JPY outperformed in Asia-Pacific trade as.....>

FOREX: JPY outperformed in Asia-Pacific trade as sources highlighted hedging

flows out of Tokyo as the reason behind the move for a second time this week.

EUR/JPY tested key support at Y131.00 but the level held. USD/JPY last Y114.40.

- This comes after a strong Weds for the USD, on the back of stronger than exp.

U.S. econ data & late hawkish rhetoric from Fed Chair Powell, as he noted that

"very accommodative policy is no longer appropriate in the current environment,

which calls for interest rates to very gradually move toward neutral. We may go

past neutral, but we're a long way from neutral at this point."

- NZD/USD & AUD/USD have remained under pressure overnight, with NZD/USD

registering a fresh YTD low in the process last dealing sub $0.6500. AUD/USD

trades below $0.7100 and threatens the YTD low ($0.7085) at writing, with a

wider than expected AU trade surplus doing little for the AUD's cause.

- France maintained its hard-line Brexit rhetoric, while a BBG sources piece

stated that "UK PM May's off'ls plan to rush the Brexit deal through parliament

to head off rebellions from her own party." GBP was unmoved on the headlines.

- Focus Thurs turns to addresses from ECB's Coeure, Nowotny & Hansson.