New Zealand Manufacturing Activity (1Q) (22:45 GMT; 18:45 EST)

Consensus:          n/a
Previous:               0.3%

Outlook: After growing 0.3% in final months of 2005, factory activity in New Zealand could contract in the first quarter.  Weak primary processing may potentially hinder sales growth, following poor pastoral production through summer.  Given recent surveys indicating diminishing business confidence, poor manufacturing sales in the first quarter would only confirm the sentiment that this sector of the New Zealand economy is stalling.  Like sales for other industries across the country, manufacturing sales may slow as a lagged result of the strengthening local currency since 2002 that have made exports more expensive for foreign consumers.  Softening domestic demand may also have an impact, as the RBNZ has forecasted inflation to accelerate to 3.9% in the second quarter.  A weak manufacturing read may initiate a further decline in the kiwi, as it would accompany the reads of falling retail sales and higher food prices that have already dragged the currency down in the past week.

Previous: Seasonally adjusted manufacturing sales for the fourth quarter of 2005 increased 0.3%.  The increase follows consecutive decreases of 0.3% and 0.2% for the third and second quarters, respectively.  The meat and dairy product manufacturing industry contributed the highest dollar value change in seasonally adjusted sales for the quarter, up 6.0%, followed by other food manufacturing.  Moderating a strong increase were decreases in machinery and equipment manufacturing, down 6.0%, and basic metal manufacturing, which plunged 15.1%.  With the exclusion of the meat and dairy product manufacturing industry, sales for manufacturing decreased 0.3%.  The sales trend has flattened over the last six quarters, following a period of stronger growth since the turning point in the March 2003 quarter.

Euro-Zone Industrial Production s.a. (APR) (09:00 GMT; 05:00 EST)
                                (MoM)                    (YoY)
Consensus:          0.4%                       3.2%
Previous:               0.4%                       3.8%

Outlook: Industrial production in the Euro-zone is expected to hold the 0.4% pace of growth in April as various member nations generated sharply divergent figures of their own last week.  French factory production unexpectedly fell by the most in six months, led by a drop in automobile output.  Furthermore, factories, utilities and mines cut production by 1.4% from March, when output rose 1.6%.  Germany, on the other hand, saw industrial production rise for the fourth month in five as exports helped Europe's largest economy cope with higher oil prices and interest rates.  The product of this counterbalance, along with results from the other member nations, may help determine the areaââ,¬â"¢s overall factory health and domestic and foreign demand.

Previous: Euro region factory activity was stronger than expected in March, confirming an economic rebound and strengthening the case for the European Central Bank to raise interest rates in June.  For the period, production actually rose 0.4% to beat market expectations of a 0.3% decline.  The increase was reported to have stemmed from stronger production of intermediate and capital goods, which offset monthly declines in durable and non-durable consumer goods. For the year, though, consumer durables and non-durables rose 2.7% and 2.2% respectively.  The higher output of capital goods, such as machines, is in line with the European Commission's view that economic recovery this year would be mainly driven by investment.

US Current Account Balance (1Q) (12:45 GMT; 08:45 EST)

Consensus:          -$222.0B
Previous:              -$224.9B

Outlook: While no where near par, the current account deficit is likely to moderate to $220.0 billion from the fourth quarterââ,¬â"¢s record $224.9 billion shortfall.  Additionally, as a percentage of nominal GDP, the gap is expected to contract to 6.8% of GDP from the previous three-monthââ,¬â"¢s record 7.1% of GDP.   In 2005, huge current account deficits accompanied strength in the dollar, as foreigners sought to aggressively accumulate US assets.  However with some apparent shakiness in the dollar in 2006 and booming competitor economies, there has been speculation that the current account imbalances may be finally ready to correct.  Any surprises to the up or down side on the balance will likely create additional volatility for the dollar as it will be the final say on US trade conditions following the disappointing goods and investment flow balances released earlier.

Previous: The US current account deficit widened a hefty 21.3% to a record $224.9 billion in the fourth quarter; while at the same time measuring up to 7.1% of the nation's gross domestic product, also a record.  For all of 2005, the current account deficit grew to a record $804.9 billion, totaling a staggering 6.4% of GDP--the ninth annual record in the past ten years.  The current account deficit is the broadest measure of the nation's economic balance sheet with the rest of the world, encompassing both trade and capital flows.  Essentially, it measures the nation's debt with the rest of the world, which must be financed by loans from abroad or asset sales to foreigners.  Thus far, the US has been able to finance its current account gap on very favorable terms, allowing interest rates to remain low and in the process fueling consumption and investments in housing as well as financial assets. Specifically, the increase in the fourth quarters current account was largely a result of a rebound in net unilateral current transfers, which had dropped in the third quarter as foreign insurance companies made payments arising from Hurricanes Katrina and Rita.

University of Michigan Confidence Survey (JUN P) (13:45 GMT; 09:45 EST)

Consensus:          79.0
Previous:              79.1

Outlook: Juneââ,¬â"¢s advanced reading of the consumer confidence survey conducted by the University of Michigan is expected to slip even lower than Mayââ,¬â"¢s figure of 79.1.  As measures of inflation continue to rise, stock prices drop, and the housing market cools leading optimism to subsequently decline.  Recently, American consumers have seen their wallets pinched due to persistently high oil prices, which have translated into $3 per gallon gasoline.  While at first glance US retail sales for the month of May improved by 0.1%, stripping away the strong surge in gas receipts revealed an actual 0.1% drop.  As gasoline in unequivocally considered a necessity rather than a desirable good, expectations for a drop in confidence is well founded.

Previous: The University of Michiganââ,¬â"¢s consumer confidence measure fell to 79.1 in May, the lowest in seven months, from an April reading of 87.4. The current conditions index, a measurement of Americans' perceptions of their financial situation and whether it's a good time to buy more expensive items like cars, fell by the most since the survey began in 1978.  The survey showed that expectations for inflation rose to the highest level since the surge in energy prices following last year's Gulf Coast hurricanes. The drop in confidence reinforced forecasts that consumers will curb the spending that makes up about 70% of the economy.

Richard Lee is a Currency Strategist at FXCM.