AUD/JPY advances on Friday and trades around 112.65 at the time of writing, up 0.39% on the day.

MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened sharply, pushing USD/JPY back towards the 155.00 support level that has held several times this year.

Rabobank’s Senior FX Strategist Jane Foley highlights that the British Pound (GBP) is vulnerable as global bond market pressure focuses on high-debt countries facing elections or budget talks.

Eurozone Retail Sales contracted at a 0.6% pace Month-on-Month (MoM) in June, while they were anticipated to rise by 0.3%.

ING’s Chris Turner writes that EUR/USD is grinding higher as markets reverse the earlier sell-off triggered by Kevin Warsh’s speech, with the pair moving back toward 1.1650. A softer Dollar backdrop versus EMFX and pro-growth G10 currencies supports the Euro.

The GBP/USD pair attracts some buyers for the second straight day, though it lacks follow-through and remains capped near mid-1.3500s through the early European session on Friday.

The Euro (EUR) posts moderate gains against the Japanese Yen (JPY) on Friday, with the EUR/JPY pair trimming some losses after a whopping 500-pip sell-off in the previous two days. Euro bulls, however, remain capped below 182.00, after bouncing up from one-month lows at 180.53 on Thursday.

Geoff Yu at BNY highlights that USD/JPY around 160 has become a credible deterrent level for FX participants, even without clear evidence of official intervention.

The GBP/JPY cross stages a goodish intraday recovery from the vicinity of the 210.00 psychological mark, though it remains on track to register heavy weekly losses.

The Japanese Yen (JPY) is trimming some gains against the US Dollar (USD) on Friday, but still on track to its strongest weekly performance since July’s US-Japan coordinated intervention.

EUR/CAD declines after opening at a bullish gap, remaining steady at 1.6040 during the early European hours on Friday.

MUFG’s Michael Wan notes strong Indian Rupee (INR) outperformance driven by larger-than-expected US Dollar (USD) inflows from Reserve Bank of India's (RBI) FCNR(B) measures, which now exceed US$130bn.

The Euro (EUR) trades lower against the British Pound (GBP) on Friday, snapping a four-day rally, after hawkish comments from Bank of England (BoE) committee member Huw Pill provided a fresh boost for the Cable on Thursday.

NZD/USD gains ground for the second successive day, trading around 0.5900 during the Asian hours on Friday. The pair appreciates as the US Dollar (USD) struggles amid softening hawkish expectations surrounding the Federal Reserve's (Fed) monetary policy path.

Here is what you need to know on Friday, September 4:

Commerzbank’s Thu Lan Nguyen argues that recent interventions by Japanese authorities and the US Treasury have largely lost impact, with the Japanese Yen giving back gains against the Dollar and US yields returning to prior levels.

The Canadian Dollar (CAD) trades broadly sideways against the US Dollar (USD) at around 1.3790 on Friday after a strong Thursday, with investors awaiting the United States (US) Nonfarm Payrolls (NFP) data for August, which will be published at 12:30 GMT.

The Euro (EUR) is trading flat above 1.1600 against the US Dollar (USD) on Friday, with upside attempts capped below the 1.1630 area.

The GBP/USD pair edges higher to around 1.3530 during the early European trading hours on Friday. Hawkish rhetoric from a Bank of England (BoE) policymaker provides some support to the British Pound (GBP) against the US Dollar (USD).

The Indian Rupee (INR) opens on a flat note against the US Dollar (USD) on Friday, but is close to its two-month high of 94.29 posted the previous day.

The USD/JPY pair stages a modest intraday recovery from the vicinity of the August monthly low and climbs back to the 156.50 area during the Asian session on Friday. Spot prices, for now, seem to have snapped a two-day losing streak, though the upside potential seems limited.

USD/CHF gains ground after registering losses in the previous day, trading around 0.8080 during Asian hours on Friday.

The AUD/JPY cross trades in positive territory near 112.80 during the early European trading hours on Friday. However, the potential upside for the cross might be limited as traders ramped up bets on a Bank of Japan (BoJ) interest rate hike, boosting the Japanese Yen (JPY). 

EUR/JPY gains ground after two days of losses, trading around 181.50 during the Asian hours on Friday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.

The Euro (EUR) holds onto previous day’s gains at around 1.1630 against the US Dollar (USD) during the Asian trading session on Friday.

The NZD/USD pair gathers strength to near 0.5895 during the Asian trading hours on Friday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) following Federal Reserve (Fed) Governor Christopher Waller’s remarks. Traders brace for the US August employment report later on Friday. 

AUD/USD extends its gains for the third successive day, trading around 0.7210 during the Asian hours on Friday.

The USD/CAD pair consolidates below the 1.3800 mark during the Asian session on Friday and remains close to a nearly two-week low, touched the previous day.

The GBP/USD pair gathers strength to near 1.3530 during the early Asian trading hours on Friday. The British Pound (GBP) edges higher against the US Dollar (USD) following hawkish remarks from a Bank of England (BoE) policymaker.

On Friday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7787 compared to the previous day's fix of 6.7807 and 6.7098 Reuters estimate.