Australian Producer Price Index (3Q) (01:30 GMT; 21:30 EST)
                         (QoQ)                     (YoY)
Consensus:         0.8%                       n/a
Previous:             1.6%                       4.5%

Outlook:  Inflation at the producer level is expected to have cooled its multi-year high pace in the third quarter of the year as a steady contraction in energy and other commodity prices offsets rate hikes.  Economists expect the producer price gauge to ease to a 0.8 percent clip over the three months through September from a six-year high in period before.  Critical to these predictions was the 25 percent drop in New York crude for the period.  Despite pushing its way towards $60 per barrel in the end of September though, the necessary good had averaged nearly $70 through July and August; so energy may not be the key to slower rates.  On the other hand, other raw material prices such as industrial metals were also on the decline.  Aside from the known prices of certain goods over the three month span, a number of indicators may support predictions for the PPI.  Measuring price growth further down the supply chain, the TD Securities inflation gauge fell to 3.1 percent in September, from a previous 4.0 percent high.  The AiG performance of manufacturing index may also be helpful.  Its input price component has moderated substantially since reaching a high in May.  

Previous: Prices received by Australian factories unexpected grew by the most in six years in the second quarter, spurred on by costs for petroleum, building materials and agricultural goods.  Inflation at the factory gate grew 1.6 percent over the three months and 4.5 percent in the longer, year-over-year measurement.  The Reserve Bank of Australia, considered this and the other two quarterly inflation gauges for the period when they decided in August to lift the overnight lending rate.  The import price index for the second quarter grew by 6.8 percent, the fastest pace of growth in five years.  More importantly however, was the later released consumer index.  The CPI gauge printed 4 percent growth for the same period, well above the central bankââ,¬â"¢s 1 to 3 percent tolerance band on inflation.

Canadian Retail Sales (AUG) (12:30 GMT; 08:30 EST)
                      (Headline)                (Ex Autos)
Consensus:         0.8%                       0.4%
Previous:             1.5%                       0.7%

Outlook: Headline retail sales in the month of August are expected to rise 0.8 percent, in line with strong recent readings in wholesale sales, which jumped 0.5 percent the same month. Meanwhile, retail sales excluding autos are anticipated to gain a more tepid 0.4 percent. The headline report has managed to remain resilient since November 2005 on the back of auto sales, despite high gasoline prices and mounting borrowing costs. With gasoline prices edging lower during the latter half of August, auto sales and other retail items should hold strong.

Previous: Canadian retail sales increased 1.5 percent in July to a record high of C$33 billion. Consumers were more likely to head out to the stores in July as a federal sales-tax cut and dealer incentives took effect. The auto sector led sales gains, which alone saw a rise of 4.3 percent to C$6.19 billion, following two months of declines. Apart from autos, modest growth was reported by pharmacies and personal care stores at 0.8 percent, while food and beverages gained 0.4 percent. Meanwhile, sales of clothing and accessories dropped 1.7 percent. Overall, consumer spending in Canada remained robust and helped to balance a deceleration in US demand for Canadian products.

Richard Lee is a Currency Strategist at FXCM.