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    In November, Australia’s year-on-year building permits rose from -1.8% to 20.2%

    by VT Markets
    /
    Jan 7, 2026
    Australia’s building permits rose significantly from -1.8% to 20.2% in November compared to last year. This increase indicates more construction activity. The data gives us important information about the building sector’s health. These numbers help us understand the economy’s overall condition and growth patterns.

    November Building Permits Increase

    The spike in building permits for November 2025 was substantial. A 20.2% increase from last year points to a strong construction pipeline, highlighting the Australian economy’s strength as we step into 2026. This data is a reliable indicator of future economic growth. This economic strength, along with the consistently low unemployment rate of 3.9% since late last year, raises inflation concerns. Consequently, the market is quickly dismissing the possibility of a near-term rate cut from the Reserve Bank of Australia. We saw a similar situation in 2022-2023, where strong domestic data pushed the RBA to adopt a more hawkish approach. Given this context, it makes sense to consider long positions on the Australian dollar. Derivative traders might look into buying AUD/USD call options to benefit from potential gains driven by rising interest rate expectations. The upcoming Q4 2025 inflation report, with estimates recently revised to 3.4%, will be crucial for this strategy.

    Investment Strategy Implications

    For equity markets, this data supports sectors that thrive on construction and higher rates, such as materials and financials. Investors could express this by purchasing call options on the ASX 200 or directly on major banks and resource companies. To protect this position, consider put options on rate-sensitive sectors like technology or consumer discretionary stocks. Create your live VT Markets account and start trading now.

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