Yen Outperforms In Early Trade On FX Rhetoric, CNY Fix and CPI/PPI Data Out Soon

Early G10 FX moves have a risk off tone. Yen is the only G10 currency up against the USD at this stage. The BBDXY is slightly higher, last just above 1251, which is close to post CPI highs from Wednesday trade.

• USD/JPY is back under 153.00, the pair last near 152.85, close to session lows and around 0.20% higher in yen terms.
• The yen gained post a fresh round of verbal rhetoric on FX from Japan's top currency diplomat Kanda. Kanda stated all options will be considered and that FX weakness has been rapid of later.
• Weakness in US equity futures, down around 0.15%, is likely aiding yen at the margins (although we are away from session lows). Concerns around fresh military action by Iran or its proxies against Israeli or the US is a near term focus point for markets. Headlines crossed in US trade on Wednesday warning of a potential missile strike.
• Elsewhere, the USD is marginally higher against the AUD. AUD/USD last close to 0.6505/10, while NZD/USD is slightly higher, last near 0.5975.
• In a little while we will have the CNY fix, which will be in focus given recent steady outcomes. A little while after we have China CPI and PPI figures out.