Also, after recent weak Australian economic data with GDP growth of only 0.3% in third quarter, decline in fuel prices could spur consumer spending, especially after Boxing Day, when holiday sales began. Fuel prices have fallen to the lowest point in four years, giving consumers something to be cheerful about following a run of bad economic news.

On Wednesday, Final China's Manufacturing PMI figures were released, while from Australia Private Sector Credit data was published. China's Manufacturing PMI posted at 49.6 in December, up from prelim reading of 49.5, but down from 50.0 in November and the first deterioration in operating conditions since May. That said, the rate of deterioration was only marginal. 

The weaker PMI reading was partly a result of a renewed fall in new business volumes placed at Chinese manufacturers in December. Separate report on Private Sector Credit in Australia showed figures in line with market forecast, posting 0.5% increase.

On Thursday from China Manufacturing and Non-Manufacturing PMI figures were released. China's official Purchasing Managers' Index (PMI) slipped to 50.1 in December from November's 50.3, in line with market forecasts, according to the official government's data, its lowest level of the year and clinging just above the 50-point level that separates growth from contraction on a monthly basis. Separate report on Non-Manufacturing PMI showed that index rebounded to 54.1 in December from 53.9 in November.

This week markets will be looking at:

Trade Balance (Tuesday 1:30)

Building Approvals (Thursday 1:30)

Chinese Trade Balance (Thursday)

Retail Sales (Friday 1:30)

Chinese CPI/PPI (Friday 2:30)