We have a ton of foxes around and you will see a fox out at anytime of the day. Especially when they have a litter of pups. I am not sure where you get that they are nocturnal. They will hunt all day long and all night long. They will lay low during the warmest part of the day however. But as the original poster had said it was 7 am. Not the warmest part of the day or by any means out of the ordinary time of the day to see a fox out cruising. Yes most animals have the fight or flight instinct. The canine family however does not have that instict. At virtually any given time that you are in an area where there is a high population of canines, whether it be a coyote or wolf or fox, you will (if looking for them) see a dog close to you. They will follow you, circle you, run ahead and sit and wait for you. I too respect the woods and the inhabitants of those woods. I however am not afraid of them in anyway shape or form.
I am not saying that foxes do not carry a high case of rabies, but to treat them all like they have it is a little paranoid.