The Caixin manufacturing PMI, released Monday morning, was at 48.2 against 48.6 in November. The services PMI will be out on Wednesday. The Caixin PMI is a closely-watched gauge of nationwide manufacturing and non-manufacturing activity, which focuses on smaller and medium-sized companies, filling a niche that isn't covered by the official data.
Starting Monday, trading hours for the yuan on the Shanghai-based foreign exchange market will be extended. The People's Bank of China made the announcement late December; it is considered a step forward in the convergence between China's onshore and offshore rates for the yuan.
The extension allows trading in the Chinese foreign exchange market during European trading hours.
On the trade front, Moody's Analytics expects China's foreign trade, due Friday*, to be at $50 billion surplus. Alaistair Chan, an economist at Moody's Analytics, said, "China's exports and imports continue to decline on a year-on-year basis, but there are signs of stability on the export side."
"Exports to the U.S. are expected to show steady recovery, while shipments to Japan and Europe will remain flat. Imports are expected to continue falling, thanks to the high supply of commodities worldwide and China's flagging demand," he added.
Moody's Analytics also expects China's Consumer Price Index (CPI) and Producer Price Index (PPI) to rise 1.5 percent on year and fall 5.7 percent from a year earlier, respectively. CPI and PPI are due later in the week.
Chan said that inflation pressures in China, outside of food, are minimal. "Monetary easing has had little appreciable impact on driving price growth, and deflation in producer goods means little upward price pressure in coming months."
Producer prices remain low due to overcapacity in heavy industry and an oversupply in commodities globally, according to Moody's. Chan added, "This is not expected to change soon, given the government's desire to restructure the economy and avoid another run up in debt."
Data Down Under
Australia will release its November trade as well as building approvals data on Thursday. The resource-oriented economy had a tough last year due to tumbling iron ore and coal prices. But some of that pain was offset by the lower Australian dollar which helped to boost its export sector revenues.
Shane Oliver, chief investment strategist at AMP Capital, said in a note previously he expects "November trade deficit to show a slight improvement [while] building approvals to fall."
He said he also expected November retail sales, which are due Friday, to show a 0.4 percent gain.