The U.S. dollar moved off from its early highs against its major counterparts in the European session on Friday, as U.S. job growth accelerated less than forecast in August, supporting the likelihood of an additional rate cut by the Federal Reserve this month.

Data from the Labor Department showed that the non-farm payroll employment rose by 130,000 jobs in August after climbing by a downwardly revised 159,000 jobs in July.

Economists had expected employment to increase by about 158,000 jobs compared to the addition of 164,000 jobs originally reported for the previous month.

The Labor Department also said the unemployment rate held at 3.7 percent in August, unchanged from July and in line with economist estimates.

Today's jobs data undermined optimism triggered by the better-than-expected ISM nonmanufacturing gauge and the Automatic Data Processing's private sector payrolls numbers for August on Thursday.

Traders are also likely to keep an eye on remarks by Federal Reserve Chairman Jerome Powell on the economy and monetary policy at an event in Zurich.

The greenback showed mixed trading against its major counterparts in the Asian session. While it held steady against the euro and the yen, it rose against the franc. Against the pound, it declined.

The greenback dropped to 0.6847 against the aussie, its weakest level since August 1. Should the greenback slides further, 0.71 is possibly seen as its next support level.

The greenback depreciated to more than a 2-week low of 0.6431 against the kiwi from Thursday's closing value of 0.6373. The greenback is seen finding support around the 0.66 level.

The greenback slipped to more than a 4-week low of 1.3179 against the loonie, from a high of 1.3240 it recorded at 8:30 am ET. The currency is likely to find support around the 1.30 level.

After rising to a 3-day high of 0.9918 against the franc at 7:30 am ET, the greenback eased off slightly to 0.9875. Next likely support for the greenback is seen around the 0.97 level.

The greenback edged lower to 1.1055 against the euro, from a high of 1.1020 seen at 7:30 am ET. Further downward trading may take the greenback to a support around the 1.13 level.

Data from Destatis showed that Germany's industrial production declined unexpectedly in July, adding fuel to worries that the biggest euro area economy entered a recession in the third quarter.

Industrial production fell 0.6 percent in July from June, confounding expectations for an increase of 0.3 percent. Nonetheless, the pace of decline slowed from the 1.1 percent fall in June.

The greenback weakened to 106.65 against the yen, after having climbed to 107.10 at 10:15 pm ET. The greenback is poised to challenge support around the 104.00 level.

Preliminary data from the Cabinet Office showed that Japan's leading index remained unchanged in July.

The leading index, which measures the future economic activity, came in at 93.6 in July, unchanged from June. Economists had forecast a reading of 93.2.

The greenback pulled back to 1.2336 against the pound, from a high of 1.2285 it recorded at 4:45 am ET. Further downtrend is likely to take the greenback to a support around the 1.27 level.

Survey data from IHS Markit and Lloyds Banking subsidiary Halifax showed that UK house prices rose for a second straight month in August, after stagnation in June, and the annual rate of increase was the highest in four months.

The Halifax house price index rose 0.3 percent from July, when they were 0.4 percent higher. Economists had forecast a 0.2 percent increase.

Looking ahead, Canada Ivey PMI for August will be featured shortly.

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