00:00Australia HIA New Home Sales, m/mNovember +3.4%+4.7%

00:30Australia Retail sales (MoM)November 0.0%+0.3%-0.1%

The yen fell versus all of its major counterparts on expectations the Bank of Japan will accede to government pressure to expand monetary easing that tends to weaken the currency. The yen declined versus the dollar and euro ahead of data this week that may show Japan had a current-account deficit in November, supporting the case for increased stimulus at the central bank’s next meeting. Japan’s Chief Cabinet Secretary Yoshihide Suga said today the next BOJ governor should see the need for bold monetary easing.

The euro stemmed a loss from yesterday on prospects European Central Bank officials meeting tomorrow will refrain from lowering borrowing costs. ECB President Mario Draghi and his board will probably keep the euro-area’s benchmark borrowing cost unchanged at 0.75 percent, according to the median estimate in a Bloomberg survey of economists before the policy decision tomorrow. Analysts in a separate poll predicted that German data today will show industrial production climbed 1 percent in November from a month earlier, when it dropped 2.6 percent.

The Australian dollar slid against most peers after data showed that retail sales and job vacancies unexpectedly declined. Australia’s statistics bureau said today that retail sales fell 0.1 percent in November from the previous month, when they stalled. The median estimate of analysts in a Bloomberg survey was for a 0.3 percent advance. Job vacancies dropped 6.9 percent over the same period, according to a separate report.

EUR/USD: during the Asian session, the pair traded in the range of $1.3065-90.

GBP/USD: during the Asian session the pair fell to $1.6035.

USD/JPY: during the Asian session, the pair climbed to Y87.55.

There is no early data in Europe Wednesday and the first calendar entries are sector outlooks from German trade bodies. At 0900GMT, the German construction associations release a joint sector outlook, while the Wholesale and Export Association release their sector outlook at 0930GMT, both in Berlin. There is an insight into the Greek economy at 1000GMT, with the release of both the November trade data and the November industrial production numbers. Also at 1000GMT, the third estimate of the EMU GDP for the third quarter is set for release. The DIW also releases its new German growth forecasts at 1000GMT. Further eurozone data is due at 1100GMT, with the release of the Portuguese November trade balance and the German November industrial output numbers. Back in Europe, at 1230GMT, German Chancellor Angela Merkel and Maltese Prime Minister Lawrence Gonzi will hold a joint press conference in Berlin.