Its a big week for economic data from Australia, with the Q4 inflation data due on the 27th (Wednesday).

Official inflation data from Australia only comes out four times a year. I started with a mini-preview here.

Also this week, Australian markets will be closed on Tuesday for a holiday (Australia Day).

But, what of today, you ask?

The National Australia Bank had scheduled the release of their monthly business survey (which includes the business confidence and conditions indicators) on January 27, which is the same day as the CPI from the Australian Bureau of Statistics.

But ... they moved it forward to today.

Thus, at 0030GMT we'll get business confidence and conditions for December.

  • Priors were 5 (confidence) and 10 (conditions) in November.

This data can be a market-mover, watch for a big departure in the results from the priors. More importantly, though, focus will be once again on China markets and forward looking to Wednesday's inflation data. On China, a deterioration there should negatively impact on 'risk', which is an AUD negative, and a stabilizing there should be a supportive input for the AUD.

November was another strong result. The mining sector, unsurprisingly, continued to weaken. In summary, the November report ...:

  • Apparent recovery in the non-mining economy has remained on track

Business conditions holding at above average levels for the past nine months

  • Business Conditions Index remained at +10 - the fourth consecutive month of conditions at this level
  • Well above its long-term average of +5

Comments from NAB Group Chief Economist Alan Oster:

"This is basically another strong result for the NAB Survey, which in conjunction with signs of improvement in the labour market, means we can put more faith in the building non-mining sector recovery"

Business confidence has been muted

Says Oster:

"Given improved prospects for the domestic economy outside of mining, relatively subdued confidence is most likely a reflection of the uncertain global economic environment. In any case, it was good to see a broad-based increase in confidence across industries"