Growth within real estate is often used as a benchmark for investors and can be used as an indicator for long term sustainable confidence within an economy. The signs have been looking ominous for a while.

We have seen a loosening in mortgage lending standards recently, (approved by the Senate) which may well lead to a reversal in this trend and we could see appetite within the property market rekindle in the months ahead as a result. It could be something to look out for if you have a longer term requirement in the Australian dollar.

The fall in consumer inflation expectations overnight could have a more immediate impact on the AUD however Governor of the Reserve Bank of Australia Philip Low placed a positive spin on his expectation for inflation levels throughout the second half of the year, with an increase in petrol prices likely to pave a positive path. Last night’s release exposed an underlying lack of confidence amongst consumers however and adds another argument to the list of multiple rate cuts needed from the RBA in the months ahead and could ultimately hinder the Aussie dollar’s value.

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