Dwelling approvals rose........>

AUSTRALIA DATA REACT: Dwelling approvals rose sharply in November to post the

biggest increase in a year as approvals for multi-units rose strongly in the

state of Victoria. Data published by the Australian Bureau of Statistics Tuesday

showed dwelling approvals rose 11.7% m/m in November, beating expectations for a

1.5% decline. The trend growth rate however, remained below single digit for two

straight months and the lowest pace since May. Overall, the data may be slightly

better than the Reserve Bank of Australia's view that dwelling investment has

peaked, and it raises the possibility that dwelling investment could still make

a small contribution to growth. However, it also means that rising dwelling

supply could become a headwind for the economy because of its impact on house

prices and rents, and thus to household spending and inflation. In the months

ahead, the RBA is likely to watch that impact closely as it could be an

important determinant on which direction monetary policy takes.