Housing auction clearance rates for Sydney and Melbourne recorded their highest levels in August ranging between 75 to 85%, and hitting levels not seen since the run up to the 2017 peak.

Our thoughts: The pickup in activity is in-line with our expectations that the residential market in Australia is bottoming out and sentiment on the mend. The latest data point will also be warmly received by the RBA who has recently aggressively cut rates to stimulate the economy.