Asian session: The euro fell

00:30 Australia Changing the number of employed October 10.1K

00:30 Australia Unemployment rate October 5.2%

02:00 China Trade Balance, bln October 17.0

05:00 Japan Consumer Confidence October 38.6

05:00 Japan Consumer Confidence Households October 38.6

06:00 Japan Prelim Machine Tool Orders, y/y October +25.9%

Canada’s dollar dropped to the lowest level in almost three weeks as concern Italy may become the latest European nation in need of a financial bailout drove investors to the safety of the U.S. currrency.

The Canadian currency dropped 1.6 percent, the most this week, extending its losses in the second half of the year to 5.9 percent.

The euro touched the lowest level in a month before Italy sells 5 billion euros ($6.8 billion) of one-year bills today, testing investor appetite after borrowing costs surged to euro-era records.

The 17-nation currency reached a two-week low against the yen after Italian yields yesterday climbed above the 7 percent level that spurred Greece, Ireland and Portugal to seek bailouts. Italy will sell five-year debt on Nov. 14.

EUR/USD: on Asian session the pair fell.

GBP/USD: on Asian session the pair decreased.

USD/JPY: on Asian session the pair fell.

On Wednesday UK data at 0930GMT includes the Trade Balance and also BOE Quoted Rates data. Despite turbulence in the euro zone, the UK's largest export market by far, the August trade data were surprisingly robust, with the global goods, and EU trade, deficits narrowing. US data starts at 1100GMT with the weekly MBA Mortgage Application Index. At 1430GMT, Fed Chairman Ben Bernanke gives welcoming remarks at the Fed's Small Business and Entrepreneurship conference in Washington. US data continues at 1500GMT with Wholesale Inventories and then at 1530GMT with the weekly EIA Crude Oil Stocks data. At 1715GMT, Fed Governor Daniel Tarullo delivers a speech on financial regulation at a Clearing House conference in New York.