Japanese Labor Cash Earnings (YoY) (JUL) (01:30 GMT; 21:30 EST)
Consensus:            0.8%
Previous:                 0.5%

Outlook: Earnings for Japanese laborers are expected to increase 0.8 percent for the month of July, versus 0.5 percent the month before, on a firming of the labor market. The unemployment rate has fallen considerably over the past 5 years to settle at its recent 4.1 percent read.  Not only is the jobless rate near a seven-year low, but job vacancies have also fallen to a 14-year low leading the job-to-applicant ratio to rise to 1.09 for its highest level since 2001. On the other hand, improvements in the labor market have yet to translate to strength in spending habits.  This could be a side effect of the three recessions that have gripped the Japanese economy since 1991.  Typically however, cash earnings tend to be a good leading indicator for household spending, which is now exhibiting positive and rising growth rates. With cash earnings increasing, personal consumption should continue to provide support for the economy.

Previous: Japanese Labor Cash Earnings increased in the month of June to a revised 0.5 percent as recent firming of the labor market has developed into strong positive trend. The strong labor market has also left consumers with increased disposable income, leading to improvements in the household sector, which yielded consumption growth of 3.5 percent over the year to the December quarter, the fastest pace of growth in almost nine years.

Australian Retail Sales (JUL) (01:30 GMT; 21:30 EST)
Consensus:           0.5%
Previous:                1.0%

Outlook: Retail sales are expected to have grown an additional 0.5 percent in July, adding on to the 1.0 percent jump realized the month before.  Predictions of another strong month of consumer spending comes thanks to continued labor market improvements and a sizable tax break over the same month.  During the month of July, the government put into affect a A$36.7 billion income tax break giving Australian consumers a significant boost in disposable income.  Expectations for where the additional income would be spent already heavily favors the discretionary spending that Aussies were already exercising before the tax break even took affect.  This is largely due to the strength in employment.  Employers unexpectedly added 50,000 new hires to its payrolls in July, pushing the jobless rate to a 30-year low, 4.8 percent.  Should domestic spending continue on a hot pace, expectations for another rate hike from the RBA will grow substantially.

Previous: Retail sales rose 1.0 percent in June as shoppers reacted positively to department store discounting ahead of the end of the fiscal year and expectations for tax cuts due the coming month. These factors, further backed by rising employment, spurred spending enough to offset the effects of gasoline prices that were still diverting a considerable portion of disposable income away from discretionary purchases. The sales gauge was a key indicator available for RBA officials to interpret whether the economy and inflation would expand further on the backs of domestic consumers.

Swiss KOF Leading Indicator (AUG) (09:30 GMT; 05:30 EST)
Consensus:            2.64
Previous:                 2.61

Outlook:  The KOF Leading Indicator gauge, used to forecast economic growth in the come months, is expected to best its six-year high mark set in July with a 2.64 read.  Predictions for such an increase holds opposing reasoning behind it however.  Still present from the previous monthââ,¬â"¢s well of positive factors is the employment factor.  The jobless rate held to its 3.1 percent, three-and-a-half year low in July, providing more jobs and leaving little choice for businesses but to raise wages to attract skilled labor in the dwindling labor pool.  Another benefit, specifically for August, was the drop in crude prices that have restricted business earnings and investment.  Over the month, oil prices in New York trade broke below the $70 per barrel mark twice.  On the other side of things, demand for the nationââ,¬â"¢s exports is coming under increased pressure as confidence in the Euro-zone drops.  For the month of August, the executive confidence IFO surveys for Germany and the Euro-Zone plunged, warning of a possible slowdown in spending.  Should this turn into a trend, then the effect on Swiss growth could be significant in the months to come.

Previous: The forward-looking Swiss economic indicators index rose to a six-year high 2.61 in the month of July.  The increase was the by-product of strong trends in employment and exports.  In the month of June and July, the unadjusted jobless rate sank to 3.1 percent of the available workforce.  The benefit the consumer procured from this situation was readily quantifiable in economic terms as the consumer confidence level jumped to five year high in July according to the SECO gauge.  Even before this, the retail sales number for June grew 4.8 percent to help boost GDP figures though domestic consumption.   Trade for July similarly soared to Sfr 1.46 billion, far beyond more reserved expectations of a boost to Sfr 0.92 billion.  One issue that was starting to cycle into worries was the decline in Germanyââ,¬â"¢s IFO read from 15-year highs.  Germany is Switzerlandââ,¬â"¢s largest export destination and a drop in demand from the countryââ,¬â"¢s manufacturers could hurt their Swiss counterpart.

Canada Current Account (BOP) (2Q) (12:30 GMT; 08:30 EST)
Consensus:             C$6.1B
Previous:                  C$10.9B

Outlook: Canada's broadest measure of international trade, the current account balance, is expected to have narrowed to C$6.1 billion in the second quarter from $10.7 billion as the balance in the goods and services trade number fell to its lowest levels in years.  In the first month of the quarter, the nationââ,¬â"¢s trade balance sank for the fifth consecutive month to a C$3.88 billion surplus, the lowest the gap has been since May 2003.  For the following two months, the surplus was unable to top the C$5 billion level that was consistently surpassed for the previous three quarters.  The flow of goods and services over international boarders was constricted for the period by a currency that stubbornly held near 28-year highs while the usual commodity push was dampened by softer prices.  At the same time, Canadians exacerbated the unfavorable trade numbers by spending the increased higher salaries on cheaper imports.  Support could be supplied by capital flows however.  While Canadian income on foreign investments should draw in more capital, the steady influx of foreign investment to local debt and equities should prove beneficial.  Aside from the unexpected drop in June to an inflow of C$343 million, the inflow of capital was strong.  Another issue with the release will be expectations for the succeeding quarters.  With the US economy showing signs of slowing, demand for Canadian assets and goods could lag in the second half. 

Previous: The current account surplus shrank less than expected in the quarter ending March as earnings on Canadian investments overseas outpaced local payoffs to foreigners for the first time since 1994.  Inflows of capital into Canada outpaced outflows by C$10.7 billion in the first quarter of the year.  While this was markedly lower than the record C$13 billion surplus record in the quarter before it, the number was still garnering a positive aura given a stingier market consensus of C$8.4 billion.  According to the breakdown, assets owned by Canadians provided a net C$593 million inflow over foreign direct investment in Canada.  This was a welcomed improvement given the trouble the physicals trade number was having over the same period.  With a currency making a seemingly unstoppable advance to multi-decade highs while natural gas prices dropped 36 percent, the goods surplus over the quarter shrank to a C$17.2 billion surplus from C$20.5 billion the three months before.

Richard Lee is a Currency Strategist at FXCM.