The commodity currencies such as the Australian, the New Zealand and the Canadian dollars declined against their major counterparts in the Asian session on Friday amid rising risk aversion, as weak U.S. retail sales data triggered worries about a slowdown in the world's largest economy. Retail sales in the U.S. unexpectedly showed a significant decrease in the month of December, according to government shutdown-delayed data released by the Commerce Department on Thursday.

Investors became cautious following news that U.S. President Donald Trump plans to declare a national emergency to try to obtain more funds for the U.S.-Mexico border wall.

White House Press Secretary Sarah Sanders on Thursday tweeted that the president would sign a border-funding bill to avoid a government shutdown. But she also noted that Trump would declare a national emergency to fund his border wall.

Investors awaited the outcome of meeting of Chinese President Xi Jinping with Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin in Beijing.

China consumer inflation slowed more than forecast in January, raising worries about deflation as domestic demand cools.

The CPI rose 1.7 percent annually, missing forecasts for 1.9 percent increase.

The aussie declined to a 3-day low of 78.09 against the yen, from a high of 78.54 hit at 6:30 pm ET. If the aussie drops further, 76.00 is possibly seen as its next support level.

Reversing from its early highs of 0.7107 against the greenback and 1.5888 against the euro, the aussie edged down to 0.7079 and 1.5941, respectively. On the downside, 0.69 and 1.62 are possibly seen as the next support levels for the aussie against the greenback and the euro, respectively.

The aussie pared gains to 1.0383 against the kiwi, from a high of 1.0408 set at 8:00 pm ET. The aussie is seen finding support around the 1.02 level.

The kiwi reversed from its early highs of 0.6839 against the greenback and 1.6514 against the euro, dropping to 0.6809 and 1.6573, respectively. The next possible support for the kiwi is seen around 0.67 against the greenback and 1.68 against the euro.

The New Zealand currency fell to a 2-day low of 75.12 against the yen, after rising to 75.57 at 5:15 pm ET. The kiwi is likely to challenge support around the 74.00 level.

The loonie dropped to 1.3312 against the greenback and 1.5026 against the euro, reversing from its previous highs of 1.3289 and 1.5010, respectively. Next key support for the loonie is seen around 1.35 against the greenback and 1.52 against the euro.

The Canadian unit declined to a 4-day low of 82.85 against the yen, after having risen to 83.15 at 6:45 pm ET. The loonie is poised to challenge support around the 81.00 level.

Looking ahead, U.K. retail sales for January and Eurozone trade data for December are due in the European session.

In the New York session, Canada existing home sales for January, U.S. export and import prices and industrial production for the same month, New York Fed's empire manufacturing survey and University of Michigan's preliminary consumer sentiment index for February are slated for release.

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