Modest Risk Off In Early Friday Dealings, AUD & NZD Sub Thursday Lows

A risk off tone is evident in early G10 FX proceedings for Friday. The yen is the only G10 currency not down against the USD at this stage, but USD/JPY sits away from earlier lows.

• The BBDXY was last near 1253.8, little changed for the session. Both AUD and NZD are down by 0.15% each and sub intra-session lows from Thursday. AUD/USD last under 0.6700, NZD/USD down to sub 0.6040. NOK is off around 0.20%.
• USD/JPY was last near 157.30 (earlier lows were at 157.07). The earlier June inflation data showed slight headline misses but a core print in line. This may not shift the BoJ debate around a July hike materially.
• Cross asset moves have seen US equity futures tick higher, 0.15-0.25%, following cash losses in US trade on Thursday. US yields are down a touch as well, with losses a little beyond 1bps at this stage.
• On the news flow front comments from the Fed's Daly reiterated earlier remarks around improving data trends, but caution around a preemptive policy shift. Also speculation continues on whether Biden will stay in the election race.
• Otherwise, current FX moves look to be extension of USD gains against some of the higher plays we saw unfold through Thursday US trade. The early equity risk mood in the region is to the downside, likely aiding the USD at the margins, despite the tick up in US futures.