USD/JPY To Fresh Lows, Steady G10 FX Trends Elsewhere

Early G10 FX trends are skewed towards yen gains. The BBDXY index was last near 1253.6, close to late session lows from Wednesday US trade.

• USD/JPY has tested sub Wednesday lows, the pair getting to 149.52 before retracing a touch higher (last 149.70, still +0.20% stronger in yen terms). Earlier highs were at 150.32, with the market still happy to fade upticks in the pair post yesterday's hawkish BoJ hike.
• We are oversold though from a RSI (14) standpoint, which is a potential watch point for yen bulls.
• The final Japan manufacturing PMI read for July has printed, coming at 49.1, against an initial estimate of 49.2.
• In the cross asset space, US equity futures are surging led by the Nasdaq (with META up strongly late post a sales forecast beat). We are away from session highs for US equity futures.
• US yields are up around 2-3bps across the key benchmarks. This follows the sharp move lower in Wednesday trade, with the FOMC and Middle East risk aversion weighing. WTI is just above late Wednesday US levels, last $78.60/bbl.
• AUD/USD is close to steady, last near 0.6540, while NZD/USD has ticked up to 0.5955, still lagging the yen.
• Coming up we have Australia trade figures, along with the China Caixin PMI print.