Dollar Index Close To Unchanged, Yen Marginally Weaker, NZD Firms

The BBDXY sits slightly lower in latest dealings versus end NY levels from Wednesday. The index was last under 1224, but has maintained tight ranges overall. Yen has underperformed at the margins, most notably against the NZD.

• Early trade saw USD/JPY dip to 142.86, but this was short lived and we climbed back towards 143.50 as the session progressed. We were last near these levels, with Wednesday highs (143.70/75) still intact. There was a modest PMI revision for Dec, while onshore equities have pared losses as the session progressed (in the first trading session for the year).
• BoJ Governor Ueda stated that he hopes wages and inflation rise in a balanced fashion this year. He also stated the financial system will be supported in the wake of the recent earthquake.
• NZD/USD has recovered from earlier lows, the pair last near 0.6265/70, around 0.30% firmer than Wednesday NY closing levels. Recent dips below the 20-day EMA (0.6245) have been supported. Local news flow has remained light.
• AUD/USD sits near 0.6740 slightly above end Wednesday levels.
• Cross asset moves in the US space have been muted, with US bond and equity futures relatively steady.
• Looking ahead, markets receive a host of Eurozone inflation prints for December. US ADP employment and jobless claims are notable releases in the US, although the focus will quickly turn to non-farm payrolls on Friday.