Asian session: The euro was 0.4 percent from a one-week high

01:30 Australia New Motor Vehicle Sales (MoM) July +3.6% Revised From +4.0% -4.0% -3.5%

01:30 Australia New Motor Vehicle Sales (YoY) July +6.9% Revised From +7.1% +3.0%

The euro was 0.4 percent from a one-week high against its U.S. peer before German data this week that analysts predict may show the currency bloc’s largest economy is gaining momentum. Germany’s producer prices probably rose in July, while surveys of purchasing managers in manufacturing and services industries showed activity picked up this month in the nation and in the euro region, according to economists polled by Bloomberg News. A gauge of German manufacturing gained to 51.1 this month from 50.7 in July and the services index rose to 51.7 from 51.3, an Aug. 22 report from London-based Markit Economics may show according to a separate Bloomberg poll of economists. An index of activity for both industries in the euro zone rose to 50.9 from 50.5, another Bloomberg survey predicts. A reading above 50 indicates expansion.

The yen fell earlier on data showing Japan’s trade deficit widened in July. Japan’s imports outpaced exports by 1.02 trillion yen ($10.5 billion) in July, compared with the median estimate for a 773.5 billion yen gap, data showed today. It was the worst since January, when the deficit was a record 1.63 trillion yen.

Australia’s dollar rose amid speculation minutes tomorrow of the Reserve Bank’s last meeting will signal no hurry to reduce interest rates further. The Reserve Bank of Australia cut its benchmark rate to a record 2.5 percent on Aug. 6. In the statement announcing the move, policy makers changed the wording when discussing whether the inflation outlook provided scope for further easing, damping expectations for additional cuts.

EUR / USD: during the Asian session the pair traded in the range of $ 1.3320-40

GBP / USD: during the Asian session the pair traded in a range of $ 1.5615-40

USD / JPY: during the Asian session the pair traded in the range of Y97.35-85

As the summer holiday season continues, Monday sees a very light data calendar that is light on volume on both sides of the Atlantic. Flash euro zone PMIs on Thursday will provide the main data focus for the markets in an otherwise ho-hum August week. The release will provide the first indication on whether the return to growth seen in Q2 GDP data will be sustained through Q3. Another relatively strong number will likely quash utterly any lingering speculation that the European Central Bank will move to cut rates again in coming months - something which had already been very much on the cards following Mario Draghi's guidance commitment in July. The only release set for Monday is the German Bundesbank's August monthly report at 1000GMT.