NEW YORK, U.S. - Ahead of Donald Trump's inauguration, the dollar edged lower while stocks were little changed on Friday, with investors preferring to be cautious.

Concerns over what Trump plans to say in his inauguration speech offset better-than-expected economic data from China and comments from Federal Reserve Chair Janet Yellen which took a less hawkish stance.

"All eyes will be on the content and style of Trump's inauguration speech," Morgan Stanley strategists led by Hans Redeker wrote in a note.

"The more 'Presidential' this speech comes across, the better the outcome for markets," the strategists wrote.

The dollar index, which tracks the greenback's performance against six major currencies, fell 0.1 percent.

The dollar slipped 0.1 percent to 114.665 yen on Friday.

The 10-year U.S. Treasury yield fell 0.2 percent to 2.4646, after rising to as high as 2.496 on Thursday.

European stocks opened weaker before making up some of the losses to trade mostly flat. 

In Asia, Japan's Nikkei reversed earlier gains to trade flat as the yen strengthened. 

Australian stocks declined 0.6 percent, heading for a 1.1 percent decline for the week, while South Korean shares retreated 0.2 percent, poised to end the week 0.4 percent lower.

Investors in Asian assets are expecting a "Goldilocks" scenario, with U.S. fiscal spending just high enough to lift growth without sucking too much capital out of emerging markets.

Gold prices, meanwhile, held steady and were headed for a fourth straight week of gains. 

And in commodity markets, oil prices rose, supported by expectations of tighter supply and following reports of record Chinese demand. 

Brent crude, the international benchmark, rose 29 cents to $54.45 per barrel, while U.S. West Texas Intermediate crude oil futures were trading up 31 cents at $51.68 per barrel.