Overall risk sentiment remained positive following the smooth passing of debt auctions in France and Spain on Thursday while investors await next week's European Central Bank's governing council meeting and European Union's summit meeting for fresh trading leads.
"The outcome of non-farm payroll data is likely to hold a key to ascertaining prospects for the ongoing risk-on mood, driven by this week's coordinated policy action," said Junichi Ishikawa, a senior analyst at IG Markets Securities Co.
U.S. non-farm payrolls, due Friday, are forecast to have improved to +112,000 in November from +80,000 in October, according to a survey of economists by Market News International.
Data released on Thursday showed that the Institute for Supply Management's manufacturing index rose to 52.7 last month from 50.8 in October.
"If non-farm payroll data confirms an improvement of the labor market in the U.S., it may help spur a further advance on the global equity markets and buoy risk sentiment further," Ishikawa said.
"And improved risk sentiment may also shore up the euro," he said.
The euro was at $1.3469 following a $1.3446 to $1.3488 range and versus $1.3463/65 in late New York on Thursday. It traded at Y104.80 versus Y104.59 in late New York.
The euro also rose after Spain sold E3.75 billion of debt securities on Thursday, meeting the maximum target, although it had to pay the highest coupon since at least 2005 to borrow for five-years notes.
"The outcome of debt auctions this week seems to underscore that the extreme anxiety about the debt crisis in Europe is easing," said Toshiya Yamauchi, senior analyst at Ueda Harlow Ltd.
"If EU leaders take additional policy action, it may boost risk sentiment further and trigger buying of the euro," he said.
The Federal Reserve Board, the Bank of Japan, the ECB, the Bank of England, the Bank of Canada and the Swiss National Bank agreed on Wednesday to cut the borrowing cost for the dollar to help prevent the contagion of the sovereign debt crisis out of Europe.
Eurozone finance ministers on Tuesday agreed to examine new options to leverage their bailout fund to deal with the region's debt crisis.
The ministers also said they would pursue a funding increase for the International Monetary Fund and that they approved disbursement of an E8 billion aid tranche for Greece.
The European Central Bank holds its next policy meeting on Dec. 8 and EU leaders will meet the following day in Brussels.
On the technical front, dealers focus on whether the euro can break through resistance $1.3515, the 21-day moving average, while they are seeing firm support at $1.3389, the Tenkan line on daily Ichimoku chart.
The dollar was little changed against the yen, as investors awaited U.S data for fresh trading leads, while offers from Japanese exporters and retail investors are capping a sharp advance above Y78.
The dollar was at Y77.77 following a Y77.64 to Y78.87 range and versus Y77.69/71 in late New York on Thursday.
"While the top-side remained heavy, the downside is also likely to be supported by intervention concerns and the 21-day moving average of mid-Y77," Ishikawa said.
Data released Wednesday by the Ministry of Finance showed that Japan spent Y9.01 trillion on intervening in the FX markets between Oct. 28 and Nov. 28, which raised speculation that Japan conducted yen-selling operation not only on Oct. 31 but also on other working days during that period.
Japan confirmed that it intervened in the FX market on Oct. 31.
Meantime, the Aussie fell amid expectations that the Reserve Bank of Australia will cut the policy rate next week following recent weak economic data.
Data released on Thursday showed that retail sales rose at a slower-than-expected pace in October and the total number of dwelling approvals unexpectedly fell in October.
Westpac chief economist Bill Evans said he now expects the RBA will cut the cash rate by 25 basis points at its policy meeting next week.
The Aussie was at $1.0221 following a $1.0203 to $1.0243 range and versus $1.0242 on Thursday. The Dollar Index was flat at 78.41.
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