An update on the deflating Australian housing bubble finds sharply lower mortgage rates failing to restart demand, and developers resorting to all sorts of giveaways to lure buyers. Home sales in December fell 6.6% Y/Y, including an unexpected monthly decline in permits. "Affordability ... has improved, but people are worried about losing their jobs." The aussie continues lower as the RBA hints at more rate cuts. FXA -0.5%.