The market mood did not change much in the European session although some key economic data from China and the UK were published.
The US dollar continued to move flat, failing to rise further from a 7-month low that saw the dollar index hovering around 102.26 against six other major currencies.
Meanwhile, the yen remained in focus by trading at a 7-month high against the USD ahead of the Bank of Japan (BOJ) policy meeting on Wednesday.
The market did not seem to react to China's gross domestic product (GDP) data which showed better growth in the fourth quarter with an increase of 2.9% year on year.
Even so, the overall reading for 2022 shows that China's economy will only grow 3% from the 5.5% projected by the government.
The Aussie and New Zealand dollars each posted little change following the data release.
Following the movement of European currencies, the euro traded almost unchanged despite the latest data showing that German inflation rose 8.6% in December.
The pound traded slightly higher following employment data that saw a continued increase in UK wage growth, which certainly requires further action by the Bank of England (BOE) in tightening policy.
When wages rise, this means that demand will rise and thus keep inflation high.
The focus in the next New York session will be on Canadian inflation data, where the dollar loonie is currently trading flat against the US dollar.
