Manufacturing activity in China rose more than expected in March, according to the Purchasing Managers' Index, which advanced 2.1 index points to 53.1 points, well above market expectations of 50.8 result.
There was also a positive lead from Wall Street, and futures markets are pointing to an upbeat start when Australia begins trading.
CommSec chief economist Craig James said he expected the figures from China to help push the Australian bourse higher at the start of trade on Monday.
"A stronger manufacturing sector in China is very beneficial for our resources sector so mining, energy stocks are likely to get a pretty good boost," Mr James said on Sunday.
"Day by day we are getting more indications that the US economy is picking up momentum and China is now looking a little bit better.
"That augurs well for a resources exporter like Australia."
US stocks recovered from early weakness to finish in positive territory after a report showed US consumer spending rose more than expected in February.
The Dow Jones Industrial Average advanced half a per cent and the S&P 500 climbed 0.37 per cent. However, the tech-heavy NASDAQ declined 0.12 per cent.
Economics news was expected to dominate the week, headlined by the Reserve Bank of Australia's monthly board meeting and interest rate decision on Tuesday.
All 15 economists surveyed by AAP last week expected the central bank to leave the cash rate unchanged at 4.25 per cent, citing the relatively more stable global economic outlook.
"The Reserve Bank remains in that happy place," Mr James said.
"Inflation is under control, growth here in Australia is a little bit below trend and the Aussie dollar is pretty comfortable at lower levels."
This week's releases from the official statistician will include retail sales figures for February, as well as building approvals and trade figures for the same month.
Private-sector reports on manufacturing conditions in Australia, Europe, the US and elsewhere are also due for release.
The Australian dollar ended the weekend offshore session at 103.58 US cents, down from 103.95 US cents at Friday's local close.
RBC Dominion Securities senior currency strategist Stewart Hall said although there was consensus the RBA would leave rates unchanged, the market had been aggressively pricing towards a rate cut.
"We expect that on the disappointment of these expectations, the Australian dollar is likely to break higher," Mr Hall said in a research note dated March 31.
The June share price futures contract closed weekend trading up 28 points at 4,373 points, on volume of 4,003 contracts.
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