While the reading is seen softening, it would still suggest the 18th straight month of expansion for China's manufacturers, which are posting their strongest profits in years thanks to a building boom and resurgent export demand. The 50-mark divides expansion from contraction on a monthly basis. However, a slowdown has started to take hold in the sector in the last few months due to a wide-ranging combination of government measures, from the crackdown on smog in heavily industrialized northern provinces to continued curbs on the housing market which are weighing on property investment.
With New Year's Day holiday on Monday and no major data releases both from Australia and USA on Tuesday we can expect steadier beginning of the week.
