The Reserve Bank's financial stability report due out tomorrow has taken on more importance than normal given the steps the central bank has taken to curb rampant Auckland house prices.
It was the same report six months ago in which the Reserve Bank announced the intention to restrict loans to investors in Auckland to a maximum loan-to-value (LVR) of 70% and also leave the share of high-LVR lending in Auckland at 10% while loosening it to 15% everywhere else.
The Reserve Bank said at the time it expected the LVR rules to reduce housing transaction in Auckland by 8% to 10% and the pace of Auckland house price inflation by 2% to 4%.
''These rules came into effect on October 1, so we will look for updated comments on how much risk the Reserve Bank sees in the housing market,'' Craigs Investment Partners broker Chris Timms said yesterday.
Outside housing, an update on the outlook for the dairy sector would probably be discussed as it was the second key risk to financial stability in the May report.
The third risk in the previous financial stability report was the global environment, including loose monetary policy that was encouraging risky investment behaviour and rising asset prices, he said.
Across the Tasman, the highlights in Australia this week would be the NAB business survey for October and October labour market numbers.
For the NAB survey, a month ago, there was a partial recovery in business confidence following Malcolm Turnbull's appointment as prime minister.
The business confidence index rose four points to five and business conditions held steady at nine.
For the October labour force figures, most indicators pointed to relatively robust conditions, Mr Timms said.
Following a decline of 5100 last month, expectations were for an increase in employment of more than 20,000.
The unemployment rate was expected to remain unchanged at 6.2%.
Today, China's new yuan loans, aggregate financing and money supply updates were due, as well as the latest monthly inflation and producer pricing data.
Tomorrow, the more relevant industrial production, retail sales and fixed asset investment numbers were out, he said.
There were a lot of consumer leads due from the United States this week.
Last Friday, October non-farm payrolls of 271,000 were much stronger than the expected 180,000.
''There isn't likely to be anything as market moving as the jobs report on Friday but this week should shed more light on the state of US consumer sales at present.''
Retail sales and consumer sentiment were due on Friday while there were earnings releases from major retailers Macy's, Kohl's, JC Penney and Nordstrom.
Data
Today: October electronic card transactions.
Tomorrow: Reserve Bank financial stability report.
Thursday: BusinessNZ performance in manufacturing index; Food price index; ANZ Roy Morgan November consumer confidence.
