Yen Lags Amid Improved Equity Tone

The USD has stayed on the backfoot against the higher beta plays, but has maintained gains against the yen. The tone from earlier in the session, around risk-on from the equity space, has continued, with sentiment further aided by reports that China may wind back property restrictions further. The BBDXY remains 0.10% lower, last around the 1257 level.

• USD/JPY got close to Thursday highs (133.95), before some selling interest emerged. The pair was last around 133.90/95. Early upside momentum in US cash Tsy yields has stalled somewhat, which may have helped stabilize yen sentiment, although it remains a firm underperformer on a cross basis. US equity futures are +0.45% higher across the major indices.
• The A$ is the best performer within the G10 space, albeit at the margins. AUD/USD was last at 0.6670/85, down from session highs of 0.6788. AUD/JPY was last at 90.65//70, finding selling interest closer to 90.90. Iron ore prices have firmed, with Singapore futures last at $116.50/tonne, +1.16% for the session, while CMX copper is up to $386, also 1% higher.
• NZD/USD trails slightly, last near 0.6245. Most other G10 currencies are up 0.15/0.20% against the USD. EUR/USD lags somewhat, last around 1.0530, while CHF is close to unchanged for the session at 0.9360.
• Coming up, EU CPI and German retail sales are in focus, ahead of the non-farm payrolls print in the US. There is also a number of Fed speakers on tap.