1. Australian Trade Balance
2. Japanese Household Spending
3. UK Manufacturing Production
4. Bank of Canada Rate Decision
5. Reserve Bank of Australia Rate Decision

Australian Trade Balance (OCT) (00:30 GMT; 19:30 EST)
Consensus: -1450M
Previous: -1615M

Outlook: Australia's trade deficit is expected to contract to A$1.45 billion in October, to bring the balance to its highest level in six months as demand for imports waned as prices for exports of necessary metals continued to rise.  While the economy has been hit by falling consumer spending over the past months as unemployment picked up off of record lows and the cost of living remained high; the same reduction is likely to translate in similar reductions in purchases of foreign goods.  Consequently, ever increasing prices of raw materials produced by Australian companies could provide the push the balance needs. Providing sterling examples for Australian exports are gold and copper. Both commodities maintained their steady price increases in October as demand from manufacturers abroad subsequently picked back up as companies had to direct less of their revenues to costs of crude oil and other energy products. 

Previous:  Trade between Australia and the rest of the world reported its 44th consecutive deficit in September as exports of metals and perishable agricultural goods decline while imports for business equipment picked up.  Australian goods sold abroad fell to A$14.67 billion for the period paced by a 1 percent decline in meat, wool and other farm goods.  Sales of necessary metals also dipped slightly for the period, despite rising prices, as business managers cut back on orders in the face of higher costs for energy products and other raw materials.  Subsequently, total imports for the month rose to A$16.28 billion led by imports of capital goods rose 3 percent.  The central bank was confident in the countries sustained economic growth for the coming quarters dependant on both business investment as well as exports in the face of dropping consumer spending.   With business investment ramping up as the RBA expected, the increase in demand has been met with rising prices for capital goods to further depress the trade balance and detract from growth.  Australia's economy grew 1.3 percent in the second quarter, the fastest pace in a year and a half, but the sustained deficit will likely slow this pace unless exports or consumer spending perk up.

Japanese Overall Household Spending (YoY) (OCT) (05:00GMT; 00:00 EST)
Consensus: 1.8%
Previous: 1.0%

Outlook:  Overall household spending is expected to increase 1.8 percent on an annual basis in October for the first two periods of subsequent increases in the indicator in over a year.  Supporting the forecasted increase in spending is the previously released 1.3 percent year-over-year increase in spending by households headed by a salaried worker.  Japanese consumers were more liberal with their money in October, despite a large jump in the jobless rate for the same period, as wages buoyed confidence.  Wages rose 0.5 percent in October from the same month a year, following a 0.8 increase from the previous period. Wages have steadily increased through the year following structural reorganizations and lay offs that has freed up significant amounts of revenue.  Unexpectedly, the strengthening labor market is also believed to be the reason for the larger than normal increase in the October unemployment rate.  Those that had formerly left the job market while companies were on a hard-line system of layoffs are starting to comeback in droves with hiring back on managers lips.  If spending continues to rise consistently over the coming months, inline with employment, then inflation and subsequently rate hikes could be close behind.

Previous:  Household spending in the world's second largest economy rose 1.0 percent in September, the first increase in eight months.  The increase contradicted the decline forecasted on the basis of the drop in spending by households headed by a wage earner for the same period.  The more specific indicator, which accounts for nearly 60 percent of overall spending, reported a 0.6 percent decline.  Explanations for the unexpected increase were placed on improved sales following the sustained deflation that has made products relatively cheap as well as a developing improvement to the job market.

UK Manufacturing Production (MoM) (OCT) (09:30GMT, 04:30 EST)
Consensus: 0.2%
Previous: -0.3%

Outlook:  Manufacturing activity in the UK is expected to rise 0.2 percent in October for the first monthly increase in three.  The sector accounts for nearly 15 percent of the economy and remains one of the last lines of support for an economy that is struggling with soft consumer spending and stalling economic growth.  Business confidence has been on the rebound over October and November as input prices of energy products ease and consume less of producers' already slim bottom lines.  The actual results for production for the period therefore rely on consumer demand.  Consumer demand continued actually rose for the third consecutive month in October with a moderate 0.2 percent increase; this despite confidence hitting a two and a half year low for the same period.  Slowing aggregate growth, led by a decline in domestic spending, was the reasoning behind the Bank of England's decision to lower the overnight lending rate.  If consumer spending and manufacturing cannot find their way back into steady, positive territory; the central bank may be inclined to focus more solely on GDP and less on inflation which is ticking lower and once again cut the benchmark interest rate.

Previous:  Factory production shrank for the second month in a row in September as manufacturers struggled with high oil costs while the economy strained to avoid a contraction.   Crude oil rose an astounding 38 percent since the beginning of the year, with petrol prices closely tailing the rise.  The increased cost for the necessary good led to a reduction in new orders as well as exports for companies as revealed by the Confederation of British Industry's indices of both of the measures.  The CBI gauge of exports fell to -25 in September while the measure for new orders checked in at -7.   Weakness has also found its base in weakening domestic consumer spending for producers' goods.  UK retail sales fell for a six month in September by 0.8 percent according to the survey conducted by the BRC.  Manufacturing's poor report for the period was mainly dragged lower by a 1.6 percent decline for chemicals and man-made fibers and a 0.6 percent drop in food, drink and tobacco.
 
Bank of Canada Rate Decision (DEC)(14:00 GMT, 9:00 EST)
Consensus:  3.25%
Previous: 3.00%

Outlook:  Raising the short term benchmark interest rate by 25 basis points to 3 percent, Governor David Dodge and subsequent policy makers elected to further tighten monetary policy in the world's eighth largest economy.  Citing rising commodity prices and rapid expansion in the region, the Bank of Canada is attempting to curb inflationary pressures that are flirting with the upper 3 percent benchmark allotted for such price increases.  Commodities, constituting 35 percent of the region's exports, have risen in valuation and contributed to global fears of raw base price increases at the producer level.  Additionally, Canada's economy is growing at a better than expected pace.  Expanding 3.6 percent, the current annualized rate dwarfs the previously expected 3 percent rate while the labor market remains tight.  According to the latest labor report released by Statistics Canada, employment grew yet again, pushing the overall unemployment rate lower to a 30-year low of 6.6 percent.  Given these reasons, there is plenty of impetus for a third consecutive increase.  However, with notions that the current price increases may be considered temporal, going forward should be interesting once commodity prices recede.  As a result, following rhetoric, if any, should remain important to current Loonie bullish momentum.

Reserve Bank of Australia Rate Decision (DEC)(22:30 GMT, 17:50 EST)
Consensus:  5.50%
Previous: 5.50%

Outlook:  Most likely electing to leave rates unchanged at 5.5 percent, Reserve Bank of Australia Governor Ian McFarlane remains steadfast in his concern over the recent slowdown in consumer spending and home building.  This has ultimately led to lesser of an inflationary environment in the fifth largest economy in the Asia Pacific region as manufacturing has slowed considerably.  Charging ahead at a 1.3 percent expansion in the second quarter, the Australian economy looks to be growing at a paltry 0.5 percent annualized rate in the third quarter. In similar fashion, building approvals rose only 1.8 percent, less than half earlier estimates with consumer sentiment dipping to a reading of 98.7.  More importantly, although consumer prices have risen 3 percent on a yearly comparison, the core figure rose only incrementally.  Core figures, which exclude volatile food and energy prices rose 0.6 percent for the third quarter, placing the annual measure at 2 percent. Ultimately, a rate hike at this time, although Aussie bullish, would be unnecessary and counterproductive as policy makers look to tend to revitalize domestic demand and production.

Richard Lee is a Currency Strategist at FXCM.