China housing bounce, strong economy data; US consumers spending; huge airplane orders; Smith rejects capital call; swaps fall sharply; NZ$1 = US$0.871, TWI = 81.1

Here's my summary of the key news overnight in 90 seconds at 9 am, including news of an improving US economy.

But first, there was news of a stunning resurgence of the Chinese housing market in June, spruiked along by big discounts apparently. An improving economy may have helped too.

Late yesterday, there was a string of data released by China, most of it quite positive. GDP growth picked up to +7.5% in the second quarter, industrial production was up +8.8%, and consumer prices rose +2.3%. Household incomes apparently rose +8.3% in real terms.

Although the locals may be sceptical, analysts were impressed by this data, especially the rise in exports which were up +7.2% in June and which is taken as a sign the US economy is raising demand.

The data helped the US and AU dollars make gains on the day.

The US data chipped in with positive numbers too, and this morning's Fed Beige Book release added to the mood noting that consumer spending is rising everywhere in the US.

And airplane orders keep pouring in even though the airplane manufacturers already have very full order books. There is now a huge backlog of future manufacturing work.

Around the world there were a couple of other key decisions taken overnight that you may like to know about. Firstly, the Japanese have decided to restart two of their nuclear plants. And secondly, Julian Assagne has lost his appeal in the Swedish courts over his sex charges.

In Australia, the ANZ Bank boss has hit back at suggestions from the Murray Inquiry that banks need to raise more capital to improve safety. He suggested that would 'threaten' the economy. Banks want their borrowers to have lots of capital, but bridle when similar standards are suggested for them.

Our swap rates slumped significantly late yesterday but in New York, yields on benchmark UST 10 yr bonds are basically unchanged at 2.55%. The US oil price rose by more than a $1 and is now at US$101/barrel. But the Brent benchmark fell and the premium between them is now less than US$5, the lowest in a long time. Gold is still hovering around US$1,300/oz and is currently just above that level.

And we start today with the NZ dollar lower again this morning after yesterday's fall in dairy prices, CPI and the China data. We are now at 87.1 USc, at 93.0 AUc. The TWI is just under 81.1.

If you want to catch up with all the changes yesterday we have an update here.

The easiest place to stay up with today's event risk is by following our Economic Calendar here »