Underperforming On Firmer Equity Tone, Automaker Wage Rises Larger Than last Year

USD/JPY mostly tracked higher post the Asia close on Wednesday. We got near 150.40 by late in NY trade, before pulling back modestly. We track at 150.25/30 in early Thursday Asia Pac dealing, with a modest pop higher on firmer US equity futures. This followed gains in tech/AI bellwether Nvidia in late trading post the company's earnings update.

• Yen weakness coincided with a firmer US yield backdrop through US trade. The benchmark yields finished 3-5bps firmer across the curve, led by the front end. The FOMC minutes suggested caution around rate cuts, although broader USD sentiment was aided a great deal by the move higher in yields.
• The BBDXY was close to flat, with yen underperforming though, off 0.15%. Focus in the early part of today is likely to be on any weaker yen cross trends against higher beta plays given the positive bounce to US equity futures post the Nvidia results.
• NZD/JPY continues to track higher, the pair last near 92.85, just off fresh highs near 93.00.
• On the data front today we have weekly investment flows, along preliminary Feb PMIs. Later on department store sales print.
• The other focus point will wage talks, with automakers signing off on larger wage increases this year versus last year (see this BBG link for more details).