JPY Outperforming AUD & NZD, Q1 AU CAPEX & China Caixin PMI Out Soon

Early FX dealings have been mixed. The BBDXY is around the 1246 level, unchanged for the session so far. USD/JPY was softer in the first part of trade, we got to a low of 138.97, but now sit higher at 139.15/20, still down slightly from NY closing levels (-0.10%). Cross asset drivers for the yen are supportive with US yields continuing to tick lower amid dovish Fed rhetoric from Wednesday's session (2yr back to 4.39% ~1.2bps). US equity futures are also down a touch.

• Japan Q1 Capex data was also better than expected, which may see Q1 GDP revised higher, which is likely helping at the margins.
• AUD and NZD are faltering somewhat though. NZD/USD back to 0.6010, around -0.2% off NY closing levels, while AUD/USD is back underneath 0.6500. AU data has been mixed with the final PMI read for May still showing a contraction, but house prices have are recovering.
• Weaker equity tones a potential factor in lower AUD/JPY and NZD/JPY levels. EUR/USD is close to steady, last just under 1.0690.
• Looking ahead, we have further inputs into the Q1 GDP story for Australia, with Capex due in around 30mins. 15 mins after the China Caixin manufacturing PMI prints.