This could also stop pressures on RBA to cut its interest rates in order to support labour market activity. However, despite these good figures, there is still a lot of room for economic progress, especially since third quarter's GDP rose only by 0.3%. On the other hand, Fed is getting ready to undergo interest rate hike which would further strengthen USD.

US session was marked by CPI, Industrial Production and Consumer Confidence figures. US CPI decreased 0.4% in December on a seasonally adjusted basis. Analysts were forecasting 0.3% decline. Over the last 12 months, the all items index increased 0.8% before seasonal adjustment. Core CPI was unchanged in December, following a 0.2% increase in October and a 0.1% rise in November. Analysts were predicting 0.1% rise.

Industrial production decreased 0.1% in December after rising 1.3% in November. Analysts were anticipating 0.1% growth. The decrease in December reflected a sharp drop in the output of utilities, as warmer-than-usual temperatures reduced demand for heating; excluding utilities, industrial production rose 0.7%. Manufacturing posted a gain of 0.3% for its fourth consecutive monthly increase. The index for mining increased 2.2 percent after falling in the previous two months.

While analysts were anticipating incline to 94.2 points, Prelim UoM reading on Consumer Sentiment showed incline to 98.2 points. This is the highest level in 11 years as steady job gains and plunging gas prices brightened the outlook for U.S. households.

From Australia, on Monday, New Motor Vehicle Sales figures are scheduled for a release. After two consecutive months of decline analysts are hoping for a better reading this month. There will be no data releases from USA, with banks being closed in observance of Martin Luther King's Day.

Figures to watch:

New Motor Vehicle Sales (Monday 1:30)