Australian Current Account (A$) (3Q) (00:30 GMT; 19:30 EST)
Consensus:         -11.000B
Previous:             -13.239B

Outlook:  The third quarter current account deficit out of Australia is expected to contract slightly to A$11 billion as foreign demand for raw materials should offset some of consumersâ�,��"� appetite for foreign-made goods. Holding at over 4 percent of GDP, Australiaâ�,��"�s current account deficit reflects an unbalanced export market which could spell trouble for growth over the three months ending September as imports, coincidentally, have also risen due to higher prices in oil and consumption goods.  From exports, contributions sustained Asian demand for mining shipments like iron ore and coal could help to offset the foreign import bill.  From the capital account, foreign investment in Australian assets could offer a sound boost to the overall trade account.  With an overnight lending rate among the highest in the industrialized world and a relatively strong economy, the lack of risk and yield were an attractive choice over the quarter.

Previous: Australia's current account deficit narrowed in the second quarter as the worldâ�,��"�s largest shipper of iron ore and coal saw mining exports climb. The deficit on goods, services and investment narrowed to A$13.239 billion from a revised A$13.63 billion in the first quarter. Surging Asian demand and record commodity prices have fueled an investment boom at mining and energy companies that stoked exports and should drive faster growth in the Australian economy this year. At the same time, rising profits may likely increase dividend payments to foreign shareholders this year, which could widen Australia's net income deficit in coming months.

BoC Rate Decision (14:00 GMT; 09:00 EST)
Consensus:         4.25%
Previous:             4.25%

Outlook:  The Bank of Canada is expected to keep its overnight cash rate untouched at 4.25 percent at its upcoming meeting even though inflation-based indicators are raising concerns.  Price growth in the worldâ�,��"�s eighth largest economy has drawn mixed reaction in recent months, since the Bank of Canadaâ�,��"�s and Statistics Canadaâ�,��"�s versions of the same components have diverged with the July sales tax cut.  In the most recent calculations for October, the Stats Canada numbers were somewhat mixed.  Headline inflation for the month didnâ�,��"�t fall as fast as the previous period, but the 0.2 percent decline was still adding pressure.  On the other hand, the annual figure was able to lift itself from the March 2004 low, 0.7 percent pace.  In contrast, the BoCâ�,��"�s core numbers have sported an expected increase in the year-over-year read to a 2.3 percent rate of expansion through October, the fastest pace of growth in over three years.   These numbers support BoC Governor David Dodgeâ�,��"�s recent comments that the economy remains near capacity, which will keep inflation at least in the background.  However, steady underlying inflation must still compete against a struggling economy for dominance of monetary policy.  Gross domestic product over the month of September surprised economists when it printed a 0.3 percent contraction, the first since March of 2005 and biggest in over three years.  For the quarter, annualized growth slowed from a 2.0 percent rate in the second quarter to 1.7 percent, making for the slowest pace of expansion itself in three years.  While a contraction in manufacturing was expected for the period given the expensive currency and waning demand state-side, the easing in government spending and massive 2.2 percent contraction in homebuilding suggest the moderation is more wide spread.

US ISM Non-Manufacturing (NOV) (15:00 GMT; 10:00 EST)
Consensus:         55.5
Previous:             57.1

Outlook:  Like its manufacturing counterpart, the ISMâ�,��"�s measurement of the service sector is expected to fall below the previous monthâ�,��"�s report.  On the other hand, a forecast of 55.5 would not leave the indicator in the potential recessionary predicament that factors have fallen into.  Instead, what would be a mere two-month low would suggest the largest sector in the economy will hold up the economy.  Support for the November read comes from the usual ramp up in consumer demand that comes along with the holiday shopping season.  The key Thanksgiving weekend impressed this year with a 19 percent jump in spending reported from the same period a year ago, which could be a harbinger of strength through the end of the year.  Other factors are supporting the improvement in activity even as the Conference Boardâ�,��"�s consumer sentiment gauge for the same month unexpectedly dipped.  Gasoline and heating oil prices have tapered off going into the end of the year, conserving discretion income; while a furious advance in the stock market has improved investor confidence amongst millions of Americans.  While the support for strength is evident, the ISM manufacturing report makes too persuasive an argument to ignore.  Reporting a contraction in the sector for the first time in over three years, the factory report bled in production, orders and employment components â�,�“ groups that hold a close correlation between the two ISM gauges.  If services surprises to the downside, calls of a looming recession in the worldâ�,��"�s largest economy will multiple.

Previous: Service activity grew at its fastest pace in five months in October when it printed a 57.1 in the ISMâ�,��"�s report.  This represented an increase for the month above even the most optimistic estimate among economists, and a substantial correction from the previous periodâ�,��"�s three-year low.  However, despite the promising report, a number of the key components making up the headline print were actually contracting.  From the logs of production, new orders slipped 0.7 points to 56.6 while the backlog of orders fell 1.5 points to 51.5.  More important for the broad economy though was the drop in the employment gauge to 51.0, a low seemingly unusually given the drop in the jobless rate.  These are forward looking components and often dictate the adjusted sentiment over the overall read.  The improvement was alternatively achieved through a drop in prices paid to a July 2003 low and a bump higher in new export orders to a five month high.

Reserve Bank of Australia Rate Decision (22:30 GMT; 17:30 EST)
Consensus:         6.25%
Previous:             6.25%

Outlook:  Markets expect the Reserve Bank of Australia to leave rates unchanged at 6.25 percent after hiking 25 basis points at its November meeting. The RBAâ�,��"�s head of economic analysis, Anthony Richards, recently said in a speech that Australia's inflation rate will probably drop below 3 percent â�,��"soonâ�,� and may be less than 2 percent by the middle of next year â�,��"as falling petrol prices flow though into the consumer price index data.â�,� However, with GDP for the third quarter estimated to jump 0.7 percent after rising a tepid 0.3 percent in the second quarter, there are upside risks for rates in 2007. Furthermore, consumer spending continued to hold at very high levels in October, as retail sales increased 0.8 percent and imports of consumption goods surged 5.5 percent. As a result, the RBA may find it feasible to tighten monetary policy by the middle of next year as the economy proves to be resilient.

Richard Lee is a Currency Strategist at FXCM.