US mortgage applications jump; US targets cash laundering through property; China exports surprise; UST 10yr yield 2.13%; oil down, gold; NZ$1 = 65.6 US¢, TWI-5 = 71.2

Here's my summary of the key events overnight that affect New Zealand, with news of a major move to tighten money laundering through real estate.

But first, applications for American mortgages had their biggest weekly rise in three months as home lending interest rates fell, data released overnight showed.

And in the US, their government announced it is starting to track and identify secret buyers of real estate, especially high-end property. The program will start in Florida and Manhattan and roll out from there, This is part of their widening attempt to control money laundering.

In China, there has been something of a surprise from their December trade data. Exports fell, but far less than analysts were expecting. Their trade balance was up to a very respectable US$60 bln. The adjustment lower in their currency may be helping. But this result does raise the risks of a currency war among Asian nations.

And China has set up a new cabinet office to co-ordinate financial and economic policy, a tacit admission that its ad hoc and disjointed policymaking is failing. This seems an odd move because they already have layers and layers of co-ordinating bodies. It will only be credible if it cuts many of those.

Back in New York, the UST 10yr yield benchmark has fallen in mid-day trading today and is now at 2.13%. Local swap rates held yesterday but are likely to follow Wall Street in trading today.

And crude oil is holding just over US$30/barrel after a brief flirt under. That is lowest in 12 years and comes after US crude stocks rose, albiet modestly this week. We will see continued belt-tightening by the oil majors and spell more pain for crude-producing nations and regions.

China has for the first time set the lower limit of its domestic petroleum price at US$40 per barrel, citing environmental concerns. At the same time, they lowered local petrol and diesel prices.

And the gold price rose marginally to US$1,090/oz.

It's been a variable night for the Kiwi dollar but it starts today at similar levels to this time yesterday. It is now at 65.6 US¢, now at 93.8 AU¢, and at 60.4 euro cents. The TWI-5 is pretty much unchanged at 71.2.

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

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