Here's my summary of the key events overnight that affect New Zealand, with news of further signs tighter lending restrictions across the Ditch are taking the steam out of the housing market.
Australian Bureau of Statistics figures show the value of loans approved for investment housing fell 6.1% from September to October, putting it at its lowest level since June last year. Having peaked in April, the value of investor loans have dropped by 15% in the three months to October.
Meanwhile, the value of loans approved for owner-occupier housing rose 0.4% in October. Overall, the total value of housing finance was down 2% over the month. Economists say weaker population growth and a huge supply pipeline mean the housing market is likely to keep cooling throughout next year and not bottom out until 2017.
There are fears China may be sucked into a Japanese-style deflationary trap. While China's Consumer Price Index (CPI) rose 1.5% in November from the same period last year, it remained well under the government's 2015 target of 3%. A 2.3% uplift in food prices year-on-year boosted the overall figure, however the price of milk and other dairy product fell 0.7%. China's CPI was flat on the previous month.
As for its Producer Price Index (PPI), this dropped in line with expectations, at 5.9% compared to November last year. The manufacturing sector continued to stagnate, forcing companies to drop their wholesale prices to stay in business. Falling 0.5% from October, November marked the index's 45th straight month of decline.
Data out of the US indicates stockpiles of unsold merchandise will again be a drag on growth. US wholesale inventories fell by 0.1% in October, as businesses stepped up efforts to reduce the excess goods they had from record back-to-back increase in inventories in the first two quarters of this year.
October's drop has prompted economists to trim their fourth-quarter GDP estimates by as much as two-tenths of a percentage point to a 1.7% rate.
In New York, the UST 10yr yield benchmark inched up overnight to 2.24%.
The US benchmark oil price remains at a low of US$37/barrel, while the Brent benchmark is just over US$40/barrel.
The gold price is stable at US$1,074/oz.
The New Zealand dollar has weakened overnight to 66.2 US¢ and 60.2 euro cents. It's up slightly to 92.1 AU¢. The TWI-5 is down to 71.4.
All eyes will be on the Reserve Bank as it reviews the Official Cash Rate this morning.
If you want to catch up with all the local changes on yesterday, we have an update here.