Australian Trade Balance (JUL) (01:30 GMT; 21:30 EST)
Consensus:            -A$700M
Previous:                -A$722M

Outlook:  The trade deficit in Australia is anticipated to narrow to a five month low of A$700 million in the month of July as a result of export growth. As commodity prices surge, iron ore, oil, and gas producers have been prone to invest in capacity expansion, which should, in turn, boost volume output to meet the surging demand of Asia. Additionally, miners and energy producers are more likely to hire on additional workers, as evidence by unemployment at a 30-year low in July of 4.8%. Subsequently, improved labor market figures drove retail sales higher in June and July to 1.0 % and 0.6 %, respectively. Higher consumption, however, may boost import figures as well and could actually diminish the trade balance.

Previous: Australiaââ,¬â"¢s trade deficit narrowed to a record low of A$722 million in June from A$2.22 billion the month prior, as the balance benefitted from an 8 percent surge in exports and a 1 percent decline in imports. Skyrocketing Asian demand, which has pushed commodity prices higher, has also encouraged mining and energy companies to expand and could add to broader economic growth in Australia.

Japan Eco Watcher ââ,¬â€œ Current Conditions (AUG) (05:00 GMT; 01:00 EST)
Consensus:          49.8
Previous:              48.4

Outlook:  The Japanese Eco Watchers survey is predicted to reflect a slightly improved outlook on current economic conditions. After falling below the neutral 50.0 mark in June, the survey subsequently dipped further to 48.4 last month. Median expectations now call for a return to a more neutral number as analysts feel that continued improving economic conditions led overall growth to an even pace. Though the forecasts are not broken down by individual components, many feel that a previously brighter outlook on high capital investments will produce a slight retracement in industrial growth. July's reading showed that the Manufacturing index lost 1.6 points to take it slightly below the 50.0 mark. If previous months of strong Machine Tools Orders growth are any indication of changes down the line, however, we should expect that Manufacturing should make its way back above 50.0 in tomorrow's news release.

Previous: Current conditions deteriorated for the fourth consecutive month in July to 48.4.  This overall read pushes the indicator even further below the 50.0 expansion/contraction level that determines the net impression of those polled for the survey.  Breaking the monthââ,¬â"¢s indicator into its components reveals that while business conditions went unchanged, Japanese consumers would feel pressure.  Tracking the overall read, the employment gauge contracted for the fourth month to 57.2, contradicting the national employment statistics and perhaps indicative of an underlying trend that could establish itself in the near future.  Overall, the household branch of the Eco Watchers survey fell from 47.3 in June to 46.5.  This was the product of declines seen in retail and services components, which found little help from improvements in the food and housing increases.  If perceptions of conditions do not improve, their could be little impetus for a pick up in domestic spending habits and the growth and interest rate trend many are expecting could sputter before it even gathers steam.

German Trade Balance (euros) (JUL) (06:00 GMT; 02:00 EST)
Consensus:          12.7B
Previous:              13.3B

Outlook:  Strong exports should help to maintain the German trade surplus in July, which is expected to post at 12.7 billion from 13.3 billion in June. Companies have benefited greatly from demand growth abroad, which has been highlighted in better than predicted results in industrial production and factory orders. As a result, firms have hired on more workers, which has kept unemployment at a two year low of 10.6% in August. While retail sales in Germany have been poor, especially after the completion of the World Cup in early July, consumers have been purchasing more foreign products and could boost imports, which could subsequently create downside risk for the trade figure.

Previous: The German trade balance in the month of June rose more than anticipated to 13.3 billion from 12.9 billion the month prior. Export growth of 7% from a year earlier assisted in the expansion of the surplus, as global demand accelerated for products such as cars and chemicals. The jump in exports has aided the German economy, as companies who have seen increased profits needed to boost output have hired more workers, bringing unemployment to a two year low in July.

Bank of Japan Rate Decision (11:00 GMT; 07:00 EST)
Consensus:          0.25%
Previous:              0.25%

Outlook: Economists are nearly unanimous in their expectations for the Bank of Japan to hold the nationââ,¬â"¢s overnight cash rate unchanged at 0.25 percent at their September 8th meeting.  These predictions are based on political and economic reasoning that will make the decision to pass on a hike an easy one.  From the political side of things, the future of government policy that could effect spending from all sectors and put the economy on a different path is unclear as Prime Minister Koizumi steps down later this month to be replaced by the new leader of the LDP and, effectively, Japan.  On the other hand, another political conflict is working for a rate hike.  Recently, the Japanese yen has depreciated against most of the globeââ,¬â"¢s other major currencies.  Just days ago the currency hit a record low against its major trading partnerââ,¬â"¢s currency; the euro.  Higher yields could very well stir the currency higher.  With these arguments in disagreement, the decision will likely fall to objective data.  Indicators since the previous policy meeting are supportive of a pass on rates.  For growth prospects, retail sales declined faster than expected by 1.7 percent in July while industrial production sank 0.9 percent in the same period.  Most telling for the outlook on the country, the Leading Economic Index dropped below the 50-expansion/contracton level to 40 percent.  This was the dimmest outlook on economic growth for the nation over the coming 6 to 9 months since February of 2005.  Inflation indicators are even more imbalanced.  The National CPI indicator for July was unchanged for the month and slowed to a 0.3 percent growth pace annually.  Any hope that pressures would pick up in the months to come have been put off by a 0.1 percent drop in labor earnings and 1.3 percent decline in household spending for the same month.  Unless th ese indicators can improve, political pressures will be of little consequence now or in the future.

Richard Lee is a Currency Strategist at FXCM.