FOREX: USD/JPY Can't Sustain Post Wages Dip, Central Bank Speak

At this stage, G10 FX changes are very limited versus end Wednesday levels in the US. The USD BBDXY index is unchanged, just under 1233.00 at the time of writing. 

• USD/JPY dipped as far as 143.19 in the first part of trade, as we saw much stronger than expected July wages data. The second positive y/y gain for real earnings bodes well for the consumption outlook. This dip was fresh lows back to August 5, but the pair quickly recovered ground. We were last 143.70, little changed for the session.
• BoJ board member Takata stated further rate hikes could occur if data outcomes align with the central banks forecasts. Takata also stated that the fallout from the early August moves needs to be assessed. This hints at no policy changes in the near term. The next BoJ meeting is on the 20th of September.
• Both AUD and NZD are steady. The A$ is near 0.6720. We heard from RBA Governor Bullock, but not a lot was learned about the monetary policy outlook compared to earlier comments. Fresh lows in iron ore haven't impact AUD sentiment.
• NZD/USD was soft in early trade, but from lows sub 0.6180 we have rebounded back to 0.620, little changed for the session.
• In the cross asset space, US equity futures have weakened this afternoon, although losses are currently in the 0.10-0.20% range. These shifts didn't impact FX sentiment though. US yields have ticked higher, but gains are not much beyond 1bps at this stage. US Fed San Francisco head Daly stated in an interview with Reuters that rates will come down, but upcoming data outcomes will determine the magnitude of the move.
• Looking ahead, euro area July retail sales and German factory orders are due. In the US, August Challenger job cuts and ADP employment, services/composite PMI/ISM, jobless claims and Q2 final productivity/ULC are all due.