Investing.com - The yen weakened slightly in early Asia on Tuesday with China data in focus.
USD/JPY changed hands at 117.37, up 0.03%, while AUD/USD traded at 0.6866, flat.
A big day in China with fourth quarter GDP seen up 1.7% quarter-on-quarter and 6.8% year-on-year. As well, the Middle Kingdom reports industrial production, expected up 6.0% and retail sales, seen up 11.3% for December as well as fixed asset investment seen up 10.2%.
Earlier, the NZIER Business Confidence index rose to 15% from minus-14%.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was quoted at 99.17, up 0.19%.
Overnight, the dollar was still slightly higher against the other major currencies in quiet trade on Monday, as the greenback found support after China’s central bank unveiled fresh measures to curb speculation and also guided the yuan higher.
Trading volumes were thin on Monday with U.S. markets closed for the Martin Luther King Day holiday.
The People's Bank of China said Monday it is to start implementing a reserve requirement ratio on offshore banks' domestic deposits, a move intended to deter offshore speculators betting that the currency will continue to fall.
The PBOC also set a firmer mid-point rate for the yuan than on Friday.
China's currency has fallen around 5% against the dollar since August, sparking fears that the slowdown in the world’s second-largest economy is deeper than had been feared.
Markets were jittery, as oil prices fell below $28 per barrel on Monday, the lowest level in 12 years.
The renewed fall in oil prices came as Iranian exports were set to resume after Western sanctions were lifted, fueling fears over increased supplies amid a global supply glut and slowing demand.
The oil rout continued to weigh on the commodity-related Canadian dollar, amid mounting expectations that the Bank of Canada could ease monetary policy further at its upcoming meeting on Wednesday in response to low oil prices.