FOREX: Yen Outperforms Amid Lower US Yields/Equity Futures, NFP Up Later

The USD BBDXY index sits sub 1229 in latest dealings, off a little over 0.15%. This largely reflects yen and to a lessor extent CHF gains in the first part of Friday trade. The USD index is above late August lows near 1222, but the trend remains poor ahead of the US NFP print.

• Cross asset signals have been negative from a US yield standpoint, with the 10yr yield breaking down through Thursday lows, last near 3.71%. The 2yr yield is also lower, but Thursday levels are holding for now. The Fed's Goolsbee stated that recent economic data trends justify multiple rate cuts, starting soon, per DJ/Market Watch. US equity futures sit lower, led by the Nasdaq off 0.40%.
• USD/JPY sits close to session lows, last near 142.95, around 0.35% stronger in yen terms. Thursday intra-session lows haven't been tested yet (142.85). Earlier data showed household spending much less than forecast in July, but this hasn't impacted sentiment. CHF is up around 0.15%, last close to 0.8430.
• AUD and NZD have both ticked down against the USD. AUD/USD last near 0.6730, NZD/USD close to 0.6215. The weaker equity backdrop weighing on both pairs, particularly against the yen so far today. Both currencies sit above recent lows against the yen though.
• Oil prices sit close to recent lows, while metal prices, including iron ore have struggled for upside, so a likely headwind, particularly for AUD.  
• Looking ahead it is all about the US NFP print.