Important factor for Aussie will be state of Chinese economy. Industrial production in China has rapidly fallen and with that demand for iron ore has dropped which is problematic for Aussie since Australia is one of the main iron ore exporters. Furthermore, gold prices have also been declining what also adds additional pressure to Aussie.
However, as Reuters reports yesterday, despite a slow-down in the Chinese economy, investment banking business has been booming. China-related deals in equity capital markets surged 69% in the first 11 months of the year compared with the same period in 2013.
There will be no data releases both from Australian and USA on Monday. Pair is likely to be influenced by iron ore and gold prices though we expect a steadier session as liquidity is still low and with holiday season extending to the next week as well we cannot expect a very volatile beginning of the week.
