At 2:30 p.m. AEST Tuesday (0030 EDT/0430 GMT), the Reserve Bank of Australia will announce its policy decision. The bank is expected to stand pat after unexpectedly raising the cash rate target by 25 basis points to 3.85 at its May meeting amid high inflation.

Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve, RBA Governor Philip Lowe said in a statement last month.

In Europe, German manufacturers' orders collapsed 10.7 percent on the month in March, setting up expectations for a sizable 3.7 percent rebound in April.

The UK construction sector PMI for May is forecast at 51.0, just 0.1 point short of its April reading.

UK retail sales volumes in April are expected to rise a slight 0.2 percent on the month after March's sharp 1.2 percent drop.

In Australia, first-quarter GDP is expected to rise a quarterly 0.3 percent for year-over-year expansion of 2.4 percent, slowing from the fourth-quarter growth of 0.5 percent on quarter and 2.7 percent on year.

China's trade surplus for May is expected to widen to US$92.6 billion versus $90.21 billion in April which was, as it often proves to be, larger than expected.

Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.

Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.