Market focus is on US inflation data published in the New York session yesterday, which is an important indicator of the central bank's direction.
Examining the published data report, the US consumer price index (CPI) for December met expectations to increase to 2.9% from 2.7% previously.
This is a new indication to the Federal Reserve (Fed) that strengthens expectations for a gradual easing of monetary policy.
This follows last week's indication in the latest US NFP employment report which gave an impression that the labor sector remains strong.
Following the CPI report published early in the New York session, the US dollar weakened briefly in the initial reaction but returned to show renewed strength towards the end of the session.
Investors are looking for clearer indications on monetary policy, but will remain cautious as Donald Trump returns to the White House as the new US President next week.
The concern is focused on tax and tariff issues that could have a major impact not only on the US economy, but on global trade.
This situation will recall the Trump administration in the previous term which was heated by the issue of the trade war between the US and China.
Trump, who has now begun announcing additional tariffs on Chinese imported goods, is seen to be returning to resume the stalled 'war'.
However, this time, the situation is seen to be getting worse when other trading partner countries are also affected when they are identified as turning away from the US dollar.
