Forex - Yen mostly flat ahead of busy data day, CPI, jobs due

Investing.com - The Japanese yen was mostly steady ahead of a busy data day from Tokyo Friday as investors wind up the week and the first month of the year.

USD/JPY traded at 118.29, down 0.02%, while AUD/USD changed hands at 0.7770, up 0.13%. EUR/USD rose 0.04% to 1.1322.

In Japan today, December December CPI, unemployment, job offers to seekers ratio and household spending are all due at 0830 Tokyo time (2330 GMT). National core CPI is seen at a pace of 2.6% year-on-year, a 19th year-on-year rise but the smallest gain since a 1.3% rise in March 2014. The unemployment rate is seen at 3.5%, unchanged from November while the job offers to seekers index is also expected to be flat at 1.12. Household spending is seen down 2.5% on year-on-year in real terms.

At 0850 (2350 GMT), December industrial output data are due with a 1.3% gain expected month-on-month. Further ahead at 1400 (0500 GMT) is the release of December housing starts, expected to fall further for a 10th straight year-on-year decline after a 14.3% drop in November.

In Australia, fourth quarter PPI and the RBA's private sector credit data are due at 1130 Sydney time (0030 GMT). Expectations for PPI show a 0.3% rise quarter-on-quarter and 0.5% month-on-month for private sector credit.

Overnight, the U.S. dollar hit fresh highs against its Canadian counterpart on Thursday, trading at a nearly six-year peak as data showing that U.S. jobless claims fell to the lowest level since 2000 last week coupled with the Federal Reserve's latest policy statement supported the greenback.

In a report, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending January 24 decreased by 43,000 to 265,000 from the previous week’s total of 308,000.

Analysts had expected initial jobless claims to decline by 8,000 to 300,000 last week.

The greenback also remained supported after the Fed signaled that interest rates could start to rise around mid-year.

Following its policy meeting on Wednesday, the Fed said it would keep rates on hold at least until June and reiterated its pledge to be patient on raising interest rates, while acknowledging the solid economic recovery and strong growth in the labor market.

The central bank also said it expected inflation to keep declining in the short term and added that it would take "financial and international developments" into account before deciding when to hike borrowing costs.

In the euro zone, Germany's Federal Statistics Office said the number of unemployed people declined for the fourth consecutive month in January, falling by 9,000, compared to expectations for a drop of 10,000.

The report showed that Germany’s unemployment rate hit a record-low 6.5% in January, down from 6.6% in December, in line with expectations.

The US Dollar Index, which measures the greenback against a basket of six currencies, stood at 94.95, down 0.01% at the start of the Asian day.