Tuesday's session brought NAB Business Confidence figures from Australia. The NAB Business Survey is showing encouraging resilience in the nonmining sector recovery, as business conditions hold-up at well above average levels. Business confidence recouped some of last months decline, but remains somewhat subdued in light of the persistent strength in business conditions. The confidence index rose to +5 index points, which is still marginally below the long run average.

 

Also, from China, Trade Balance data was published. Data on Tuesday showed China’s exports fell for a fifth month and a slump in imports extended to a record 13 months, clouding prospects for global growth. Trade Balance surplus amounted 343 billion yuan, missing forecasts on surplus of 400 billion yuan. Exports fell 3.7% y/y, also missing expectations on 2.9% decrease. On the other hand, imports fell 5.6%, beating predictions on decline by 11.3%.

 

On Wednesday Australian Home Loans figures were released. The trend estimate for the total value of dwelling finance commitments excluding alterations and additions was flat. Owner occupied housing commitments rose 1.9% while investment housing commitments fell 3.1%. In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 2.0%. In trend terms, the number of commitments for owner occupied housing finance rose 0.8% in October 2015. Overall, Home Loans fell 0.5% in October, beating forecasts on 1.3% fall.

 

However, the focus of the session was on China's CPI and PPI data. China's consumer inflation picked up slightly in November but remained well under the government's 2015 price target of 3%.The data has increased calls from some economists for more stimulus and interest rate cuts to spur growth and prices, even though the November consumer price index (CPI) surprised on the upside, rising 1.5% on-year from 1.3% in October. Economists had expected a 1.4% rise. Wednesday's release from the National Bureau of Statistics (NBS) also showed factories were plagued by producer price deflation, with the producer price index (PPI) down 5.9% in November from year earlier, in line with expectations and flat from October's drop. It marked the 45th straight month of declines in the index.

 

Focus of Thursday's session was on Australian job data. Australian employers recorded the biggest back-to-back monthly job gains in almost 28 years, sending the currency soaring by almost a U.S. cent while renewing doubts about the veracity of the data. Employment rose 71,400 from October; economists forecast 10,000 drop. Jobless rate dropped to 5.8% from 5.9%; economists predicted 6%. Full-time jobs rose by 41,600; part-time employment increased by 29,700. Participation rate, a measure of labor force in proportion to the population, rose to 65.3%; economists predicted 65%.

 

This week markets be looking at:

 

Monetary Policy Meeting Minutes (Tuesday 1:30)