The dollar showed only a moderate reaction overnight to an unexpected surge in last week's U.S. initial claims for unemployment benefits.
Some traders said the reaction was an indication of improved sentiment for the dollar, and the currency could digest somewhat negative news, such as a weaker reading for the payroll data.
Kaoru Kondo, chief currency analyst at Fisco, said he didn't expect the closely watched payroll figures to prompt the market to chart a new direction, as the Fed's policy of raising interest rates was intact -- acting as a support for the dollar.
"The Fed still considers short-term rates to be accommodative and so long as the Fed's policy of moderate rate increases stays the same, the currency market may not be affected much by swings in the jobs data," Kondo said.
Economists forecast that 175,000 new jobs were generated last month. Views were divided as to how the dollar would react if the reading came in around 100,000 to 150,000.
There was some expectations that the U.S. economic growth scenario and interest rate differentials could take center stage again and lend support to the dollar.
The Fed is widely expected to raise short-term rates by 25 basis points to 2.50 percent at its February meeting.