Japanese Machine Orders (MoM)(AUG)(5:00 GMT, 1:00 EDT)
Consensus:  2.5%
Previous:  -4.3%

Outlook:  Expected to once again rise in the month of August, Japanese machine orders looks to have improved with business sentiment remaining lofty on increased consumer and global foreign demand in the world's second largest economy.  According to the Bank of Japan's business confidence survey last week, manufacturers expect to increase investment on equipment and factory construction by 16.2 percent in the current fiscal year ending March 2006.  Further bolstering the aforementioned notion has been a raft of improved data on the consumer side as well. Notably, consumer sentiment remains higher, retail sales have risen 1.5 percent in the most recent print and leading economic indicators have soared above the 50 expansionary level.  All things considered, further notions of positive growth would contribute to increasing interest as the economy expands at a 3.3 percent annual pace in the second quarter.

Previous:  Declining for the month, Japanese machine orders fell 4.3 percent in July according to the Cabinet Office in Tokyo.  The dip looked to be paced by waning demand in the telecommunications sector, which has led gains in the figure for two of the three previous months. Subsequently, foreign orders rose 20.9 percent to 978.8 billion yen and were suggestive of continued growth in export and shipping.  Compared to last month's 11.1 percent rise, the decline was estimated by market participants with economists citing a slight retracement after the considerable jump higher in the previous month as expected.  As a result, sentiment remains high that continued growth is in store for the world's second largest economy, as lofty business sentiment will feed continued corporate investment.  Capital spending vaulted 7.3 percent higher in the second quarter, faster than the previously forecasted rate of 6.6 percent according to the Ministry of Finance.

Richard Lee is a Currency Strategist at FXCM.