Nomura's musings;..............>

AUSTRALIA DATA REACT: Nomura's musings; Construction work done rose by 15.7%

q/q, well above consensus (mkt -2.3%). This reflects the large rise in

engineering (+33%). There was a similar development last quarter, and looks to

reflect the import of large LNG platforms. As it did 3 months ago, the market

could get a bit excited about the outlook for Q3 GDP. But the parts that gives a

guide to GDP components, such as building work done (residential and

non-residential), declined by 0.4% q/q in Q3. This takes the gloss off the

headline result. And with the AU-US 2yr swap spread now in negative territory

for the first time since 2001, upside in AUD should remain capped.