For those that don’t follow the Australian economy closely, we’ve seen a big housing boom. That is now well and truly over and there are many calling for a crash.

Real estate is a big part of the Australian economy and wealth in general. Tighter lending standards are really hurting home prices and the follow through is on building and construction also.

Today we saw a big miss in building approvals at -9.4% MoM. A really bad result.

On the news, the AUD/USD is down 0.3%. Don’t underestimate the impact this might have going forward.