I think I have found an Australian equivalent of Lion Brand. I was in Big W today (chain store, sells clothes and cds and house stuff and all that jazz), and I decided to have a look at the yarn. I am going to design a fuzzy hot water-bottle monster using one of those novelty yarns like the powder puff. Because it is all squishy and cuddly.
They've introduced a new line called something like Shaun Sheep, and it seems to be weighted towards the worsted, towards what seems the US standard. Cheap as, but I don't actually have an issue with that. If I am going to knit something that is silly, that won't last, I don't actually WANT to spend serious money on it. I enjoy the knitting, I might get a season out of it, but I don't need to spend $100 on Bobblilcious. (I have actually decided that I might not make Bobbilicious. I have another shrug with the same body shape, and it makes my frontage look decidedly more than ample.) There seem to be some that will felt okay, and not be a pricing disaster if I screw it up.
Plus, also on the good side, it isn't my imagination. It IS getting cooler. It was 8 degrees (celcius) last night according to the BOM. Still 24 during the day, but knitwear weather approaches! I love living where it gets cold enough to wear my winter woolies...