Earlier yesterday morning the Westpac-Melbourne Institute Consumer Sentiment Index figures were released showing fall by 5.7% in December from 96.6 in November to 91.1 in December. The Index is now at its lowest level since August 2011 when it briefly fell below 90. Prior to that you have to go all the way back May 2009 to see a period when the Index printed consistently below today’s level.

From China CPI and PPI data was released. The consumer price index in China rose 1.4% from the year-ago period, what is the lowest reading since November 2009 and below expected increase by 1.6%.  Month-on-month, prices fell 0.2%, missing forecasts on no change. Decline in inflation is mostly due to falls in global commodity prices which should, on balance, benefit most firms and households. What we can also expect is that price pressures are to moderate further going into next year.

Separate report on PPI also missed market predictions on decline by 2.3%. The producer price index fell for the 33rd straight months, down 2.7% on year in November.  The wider fall in industrial commodity prices is likely to push year-on-year growth in producer prices even deeper into negative territory in the months ahead. However, falling PPI shouldn't be seen as a sign of distress in the industrial sector.

Tomorrow, we would pay attention to Australian job and unemployment rate figures. Unemployment rate is expected to raise to 6.3%, while number of unemployed in November should should decrease by 15,200. In the US session Retail Sales and Unemployment Claims data is scheduled for a release. Analysts are predicting 0.4% incline in Retail Sales and 0.1% growth in Core Retail Sales. Number of Unemployment Claims should increase to 299,000.

Figures to watch:

MI Inflation Expectations (Thursday 1:00)

Employment Change/Unemployment Rate (Thursday 1:30)

Retail Sales (Thursday 14:30)

Unemployment Claims (Thursday 14:30)