The dollar stood its ground on Wednesday, though it struggled...

The dollar stood its ground on Wednesday, though it struggled for further headway despite strong U.S. retail sales data, as traders turned their attention to looming Chinese growth figures and the escalating violence in the Middle East.

A blast at a Gaza hospital dealt a blow to hopes the conflict could be contained. U.S. President Joe Biden is en route to Tel Aviv. The Israeli shekel ILS=D3 fell back to the weaker side of 4-per dollar after a brief bounce overnight.

U.S. yields had shot sharply higher after data showed retail sales increased strongly and more than expected last month, in the latest sign of the economy's enduring strength. Two-year yields US2YT=RR hit a 17-year high at 5.24%.

Yet the dollar, which has moved in lockstep with yields lately, was supported without gaining much.

Some traders pointed to a positive survey of German business morale and a Bloomberg report suggesting the Bank of Japan is likely to revise its inflation forecasts higher as helping the euro and yen lean against any dollar strength.

The euro EUR=EBS gained 0.1% overnight and was steady at $1.0570 in Asia on Wednesday. The yen JPY=EBS jumped briefly, before falling back to trade steady at 149.75 on Wednesday.

Others suggested the lagging dollar could be a sign its recent run is losing momentum. The benchmark 10-year Treasury yield US10YT=RR has climbed about 100 basis points since mid July, and the dollar index =USD is up 7% in the same period.

"It's had a really good run and it's stalled a bit," said Westpac analyst Imre Speizer. "Maybe it's hitting the limits of this stage of the rally, and needs a bit of a correction."

The dollar index was up less than 0.1% overnight to 106.26. China's yuan fell in overnight offshore trade CNH=D3 ahead of GDP data due later on Wednesday. The Australian and New Zealand dollars were steady in early trade - though have started moving in opposite directions on interest rate expectations.

On Tuesday data showed inflation had cooled in New Zealand, while the Reserve Bank of Australia struck a surprisingly hawkish tone in meeting minutes -- sending the Aussie/kiwi cross AUDNZD= sharply higher and through its 50-day moving average.

The Aussie AUD=D3 held Tuesday gains to buy $0.6358 on Wednesday. The kiwi NZD=D3 nursed losses at $0.5894.

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	Currency bid prices at 0038 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS																	   

							  $1.0563		 $1.0576	-0.12%		  -1.41%	  +1.0577	 +1.0564 
																								 
 Dollar/Yen		JPY=EBS																	   

							  149.7350		149.7900   -0.04%		  +0.00%	  +149.7900   +149.7300 
																								 
 Euro/Yen		 
				  S>		  158.17		  158.44	 -0.17%		  +12.74%	 +158.4500   +158.1800 
																								 
 Dollar/Swiss	  CHF=EBS																	   

							  0.9007		  0.9005	 +0.03%		  -2.59%	  +0.9007	 +0.9002 
																								 
 Sterling/Dollar   GBP=D3																		

							  1.2166		  1.2184	 -0.13%		  +0.62%	  +1.2183	 +1.2168 
																								 
 Dollar/Canadian   CAD=D3																		

							  1.3652		  1.3648	 +0.03%		  +0.76%	  +1.3655	 +1.3648 
																								 
 Aussie/Dollar	 AUD=D3																		

							  0.6357		  0.6366	 -0.13%		  -6.73%	  +0.6367	 +0.6358 
																								 
 NZ				NZD=D3																		

 Dollar/Dollar				0.5890		  0.5897	 -0.03%		  -7.17%	  +0.5899	 +0.5894 
																								 
																								 
	 
All spots  FX=  
Tokyo spots  AFX=  Europe spots  EFX=   Volatilities  FXVOL=   Tokyo Forex market info from BOJ  TKYFX   
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World FX rates	https://tmsnrt.rs/2RBWI5E 

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