• BRC December Retail Sales Monitor
• Australian Trade Balance

BRC December Retail Sales Monitor (00:01 GMT, 19:01 EST)
Consensus: N/A
Previous: 0.8%

Outlook: UK retail sales are expected to make slight improvements, this December, compared to last year. The International Council of Shopping Centers reports that sales at chain stores rose 3.2% this month, compared to last year. As well Visa accounts that charges on credit and debit cards rose by 17.5% this holiday season as compared to the last. Wal-Mart, the largest retailer in the world, sustained moderate growth between 2 and 4% this December. While Target corp. boasted greater earnings as it grew about 4.7%. Official figures will be reported by the British Retail Sales Monitor this coming Monday.  If higher, consumer sentiment may pickup in the coming months along with the notion that the last of the central bank's concerns will have been addressed.  This would lay to rest any fears of a near term rate hike, pushing for sterling bullishness.

Previous: According to the British Retail Consortium this November, retail sales grew by 0.8% compared to the previous year when they actually fell by 0.2%. This gain came as a surprise to the UK, being the first positive increase since March. Colder then usual weather, stimulated clothing and footwear sales, which had been underperforming in previous months. Still UK shoppers remained frugal; usually waiting until sale days, which November had plenty of, to make purchases. However, most stores still had to rely on discounting and promotions to drive sales higher. November was only the second month this year to post an increase in retail sales. Retailers look forward to the coming month of December, counting on the holiday season to boost sales into more favorable territory.

Australian Trade Balance (NOV)(00:30 GMT, 19:30 EST)
Consensus:  A$-1800M
Previous: A$-1322M

Outlook: Analysts expect a wide increase in Australia's trade deficit for the month of November. Although the previous month showed a narrowing, to only a shortfall of A$1.3 billion, speculation is that November will post different results. An expectation of a A$1.8 billion deficit has been set for Monday's trade balance report. Australia's export price index experienced increases of 4.7% in the third quarter, and it is likely that the fourth quarter will show a decline. Nonetheless aluminum copper, gold and several other precious metals, which drive Australia's exports, all showed increases in price over November.  At this point, a wider deficit may cause downside pressure for the Australian denomination as the economy struggles with sluggish individual consumption and plateauing production.

Previous: Australian trade deficit for the month of October came in better then expected at a narrow A$1.3 billion. Analysts anticipated a deficit of A$1.45 billion following September's discouraging A$1.56 billion shortfall. Exports climbed 2% for the month of October due in large part to China's increased demand for raw materials. Sales to China improved by 48 % in only 4 months compared to the previous year. Raw materials account for almost 60% of Australia's exports, and with the soaring prices of precious metals, specifically aluminum and copper, Australia was able to cash in on the month. Although total imports rose by a significant 21%, this was in large part due to imports of capital reproducing goods like business machinery and vehicles. Subsequently, consumer goods imports actually dropped by 2 percent in October. Although October marked the 45th straight month of trade deficits for Australia, it also showed signs of hope as exports neared record highs and the total trade imbalance narrowed significantly.

Richard Lee is a Currency Strategist at FXCM.