90 seconds at 9 am: China targets waste, says 7% lowest growth it will tolerate; Dow and gold higher; NZ$1 = US$0.800, TWI = 75.4

Here's my summary of the key news overnight in 90 seconds at 9 am, including news from China.

China has banned government and Communist Party agencies from constructing new buildings for five years and told them to suspend projects that have already won approval as the country seeks to cut wasteful spending.

Premier Li Keqiang’s government also now says 7% growth is the bottom line for tolerance of an economic slowdown, signaling it will act to support expansion if necessary.

It is clearly backing away from the tougher line it took on reigning in bank credit expansion in the face of slowing prospects.

The Dow is up on upbeat earnings reports, hovering around its all-time highs, although volumes are reported to be light as the US moves into its summer holiday season. An important non-Dow stock, Apple, will report earnings today.

Gold and oil are higher on the day.

There is some important data to be released later today - 'event risk', as they say, will be high.

Firstly we will get our trade balance results for June and anything less than a $100 million surplus will be below expectations.

Then we get Aussie CPI which will probably confirm conditions are in place for another RBA rate cut on Tuesday week.

And finally we get the HSBC flash PMI for China which will give us an indication of how fast the Chinese economy is slowing.

The NZ dollar starts today back at 80.0 USc, 86.1 AUc, and the TWI is at 75.4.