USD Stabilizes, USD/JPY Rebounds +50pips From Intra-Day Lows

The USD tone is slightly firmer in the first part of today's session. The BBDXY is 0.05/0.10% higher, pushing the index back above 1238. Cross asset signals are supporting the USD at the margins. US equity futures have opened lower (-0.20/0.30% for the major indices), while US cash Tsy yields are a touch higher (1.1/1.8bps up across the curve, led by the 7yr).

• USD/JPY dipped to lows near 131.60 post the Tokyo Dec CPI data, but wasn't sustained. The headline printed at 4.0% y/y, in line with expectations, while the core measure rose to 4.0% (against 3.8% forecast), although the core-core was in line at 2.7%. Houshold spending also fell -1.2% y/y versus +0.5% forecast.
• USD/JPY now sits back above 132.15, around +0.20% higher for the session and +55pips from intra-day lows.
• AUD/USD is back to 0.6905/10, but found some support ahead of 0.6900, while NZD is around 0.6370, both less than 0.10% weaker versus NY closing levels.
• There is little in the way of further data/event risks for the rest of the Asia Pac session.