Forex Today: AUD rebounds on strong jobs, USD bounces too, UK retail sales – Up Next

Dhwani Mehta FXStreet

A volatile Asian session dominated by risk-off sentiment seen around the Asian equities, as the Trump controversy continues to haunt markets. However, the US dollar bucked its ongoing losing streak and attempted a minor-rebound versus its main peers, tracking a relied-rally in treasury yields.

The Aussie was the top performer in Asia, having rebounded sharply to 0.7460 levels on a stronger Aus jobs report. Meanwhile, the Japanese currency was the weakest, despite upbeat Japan’s Q1 GDP report.

Attention now turns towards the UK retail sales data, which will be the next big event for the GBP. Markets are expected the retail sales to rebound in April, after having booked the biggest quarterly decline since the first quarter of 2010in March. Later in the NA session, we have the usual weekly jobless claims and Philly Fed manufacturing index, followed by ECB President Draghi’s speech at the University of Tel Aviv.

Main topics in Asia

Japan Gross Domestic Product (QoQ) above forecasts (0.4%) in 1Q: Actual (0.5%)

House Oversight Chairman Chaffetz invites Comey to testify next week

House Oversight Chairman Jason Chaffetz is inviting former FBI director James Comey to testify next Wednesday.

Flynn told Trump camp before Presidential inauguration he's under probe – NY Times

The New York (NY) Times out with the latest headlines on the Trump controversy, citing that former National Security Adviser Michael Flynn told Trump camp before Presidential inauguration he's under probe.

Former FBI chief Mueller appointed to probe Trump-Russia ties - RTRS

The US Justice Department appointed former FBI chief Robert Mueller late-Wednesday as special counsel to investigate alleged Trump – Russia links, Reuters reports.

Australian April jobs solid: Jobless rate ticks down to 5.7%, beats estimate

Australian April employment report came much better-than expected, with the employment change at 37.4k vs 5.0k exp and 60k prior, with full time job creation at -11.6k vs 73.9k last, while part time jobs came at 49.0k vs -13.6k.

Key Focus ahead

GBP/USD: Will it take-out 1.3000 on UK retail sales rebound?

The GBP/USD failed yet another attempt to surpass stiff resistance lined up just ahead of 1.2990 levels in the Asian session, as investors await the UK retail sales data to take the spot finally through 1.30 handle.

GBP/USD Forecast: can UK retail sales help to break through monthly trading range?

Currently trading around 1.2965-70 region, traders now look forward to today's release of UK monthly retail sales data for some fresh bullish impetus to break through the psychologically important level.

USD/JPY Forecast: Relief rally likely as focus may shift to Trump’s foreign visits

The Dollar-Yen pair is oversold as per the RSI on the 4-hour chart. That goes will the face that the political turmoil may be put on the back burner in the short-run.

GMT	Event	Consensus	Previous
Thursday, May 18
08:30	GBP Retail Sales ex-Fuel (MoM)	1.0%	-1.5%
08:30	GBP Retail Sales ex-Fuel (YoY)	2.5%	2.6%
08:30	GBP Retail Sales (YoY)	2.0%	1.7%
08:30	GBP Retail Sales (MoM)	1.0%	-1.8%
11:30	EUR ECB Monetary Policy Meeting Accounts
12:30	USD Initial Jobless Claims	240K	236K
12:30	USD Continuing Jobless Claims	1.960M	1.918M
12:30	USD Philadelphia Fed Manufacturing Survey	19.5	22.0
12:30	CAD Foreign portfolio investment in Canadian securities		$38.84B
12:30	CAD Canadian portfolio investment in foreign securities		$6.33B
14:30	USD EIA Natural Gas Storage change		45B
17:00	EUR ECB President Draghi's Speech
17:15	USD FOMC Member Mester speech
Friday, May 19
08:00	EUR Current Account s.a		€37.9B
08:00	EUR Current Account n.s.a		€27.9B
10:00	GBP CBI Industrial Trends Survey - Orders (MoM)	4	4
12:30	CAD Retail Sales (MoM)	0.4%	-0.6%
12:30	CAD Retail Sales ex Autos (MoM)	0.2%	-0.1%
12:30	CAD Consumer Price Index (MoM)	0.5%	0.2%
12:30	CAD Bank of Canada Consumer Price Index Core (YoY)	1.7%	1.3%
12:30	CAD Bank of Canada Consumer Price Index Core (MoM)		0.3%
12:30	CAD Consumer Price Index - Core (MoM)		0.3%
12:30	CAD Consumer Price Index (YoY)		1.6%
13:15	USD Fed's Bullard speech
14:00	EUR Consumer Confidence	-3.0	-3.6

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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