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The Greenback managed to rake in gains despite downbeat U.S. retail sales data.

Can the dollar keep banking on safe-haven flows today?

Before moving on, ICYMI, yesterday’s watchlist looked at CAD/JPY gearing up for a triangle breakout ahead of Canada’s CPI release. Be sure to check out if it’s still a good play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

Canadian headline CPI advanced from 0.5% to 0.7% month-over-month in April vs. 0.5% forecast, trimmed CPI down from 4.4% to 4.2% year-over-year vs. projected 4.1% reading

U.S. April headline retail sales rose 0.4% month-over-month vs. 0.8% forecast, previous reading upgraded from 1.0% decline to smaller 0.7% drop

U.S. April core retail sales posted 0.4% month-over-month uptick vs. 0.5% forecast, March reading upgraded from 0.8% drop to 0.5% decline

U.S. April industrial production jumped 0.5% month-over-month, following earlier 0.4% gain, instead of staying flat as expected

U.S. NAHB housing market index improved from 45 to 50 in May, reflecting shift to a favorable outlook instead of holding steady

Japanese preliminary Q1 GDP showed 0.4% quarter-over-quarter expansion versus projected 0.2% growth figure, previous reading downgraded from 0.2% to 0.0%

Japan’s preliminary GDP price index rose from 1.2% to 2.0% year-over-year as expected

Japanese industrial production upgraded from 0.8% to 1.1% instead of staying unchanged

Australia’s wage price index showed another 0.8% quarter-over-quarter gain, short of the estimated 0.9% increase

Price Action News

Overlay of USD Pairs 15-min

Overlay of USD Pairs 15-min

Dollar strength was the name of the game in the past trading sessions, even as Uncle Sam’s April retail sales figures fell short of estimates.

As it turned out, market watchers found green shoots in the revisions to previous readings, as well as upbeat results from the NAHB housing survey and industrial production data.

The Canadian dollar managed to pocket some gains after the economy printed strong CPI readings, but the oil-related currency returned its winnings when the commodity resumed its slump.

Upcoming Potential Catalysts on the Economic Calendar:

BOE Governor Bailey’s speech at 9:50 pm GMT
U.S. building permits and housing starts at 12:30 pm GMT
New Zealand’s quarterly producer prices at 10:45 pm GMT
Australia’s employment report at 1:30 am GMT (May 17)

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

AUD/USD: 15-min

AUD/USD 15-min Forex Chart

AUD/USD 15-min Forex Chart by TV

The Aussie has been on weak footing today after Australia printed a downbeat quarterly wage index, suggesting subdued inflationary pressures and lower odds of an RBA hike.

However, AUD/USD appears to be finding buyers at S1 (.663) near the previous day lows. If support keeps holding, the pair might be able to pull up to nearby resistance levels.

The pivot point (.6670) lines up with a short-term falling trend line and former support zone that might be enough to keep gains in check.

There are no major reports from the U.S. economy today, although debt ceiling updates and mid-tier housing data could still bring volatility for USD.

Meanwhile, Australia is gearing up to print its April employment report and might reveal a slower pace in hiring, triggering more downside for AUD.

Keep an eye out for a break below current levels that could set off a drop to S2 (.6610) or lower!