ANZ Research discusses the USD outlook around next week's US CPI print on Tuesday.

"January US CPI is the key event for the DXY, with Core Services Excluding Housing in focus. On a year-to-year basis, we expect January core CPI would result in core easing to 5.4% from 5.7% and headline to 6.2% from 6.5%," ANZ notes. 

"Based on our forecasts of a slight decline in year-on-year figures, some easing in USD strength could be expected following the release. The DXY is currently touching the 50-day moving average, and a weaker CPI print is likely to see the USD fail to break through this level, although a retreat would be capped near term. Ahead of CPI, we expect the USD to be supported at the current range around 103," ANZ adds.