Euro consolidates in Asia

The euro struggled to make much headway on Friday, consolidating this week's gains as traders stuck to the sidelines ahead of a crucial US jobs report and event-packed week that could prove decisive for the currency bloc. The non-farm payrolls report is expected to show an increase of 122,000 jobs and a steady unemployment rate of 9.0 percent.
A positive surprise would underpin a recent string of solid US data and bolster risk sentiment, while a weaker-than-expected outcome may push investors to take more profits on recent gains. The euro changed hands at $1.3460 against $1.3457 late in New York. It was off a one-week peak of $1.3534 hit on Wednesday after major central banks moved to ease a credit squeeze stemming from the crisis, sparking a rally.
"The move by the central banks simply eased liquidity worries for now. The big-bazooka solutions are coming next week and the euro's strength hinges on their feasibility," said Sumino Kamei, senior currency analyst at the Bank of Tokyo-Mitsubishi UFJ in Tokyo. French and German leaders are meeting next Monday to outline joint proposals to put to a December 9 EU summit, seen as - yet another - make-or-break meeting for the 12-year-old currency bloc.
Decent stop-loss euro bids were spotted in the $1.3520-25 area, while offers were lurking near $1.3500. One possible resistance point for the currency lies near $1.3525, the bottom of the weekly Ichimoku cloud. With the euro on the front foot for now, the dollar index slipped 0.1 percent to 78.310. Against the yen, the dollar was mildly bid at 77.77, still hemmed in a 77-78 range with investors wary of more massive intervention by Japan.
The New Zealand dollar tested this week's high set on Wednesday at $0.7824 for the third time in three straight sessions, but came slightly short of it, last changing hands at 0.7806. It has risen nearly 4 percent this week. Support for the kiwi is seen around $0.7730, while the 55-day moving average at $0.7900 is likely to cap the topside. The Australian dollar stood at $1.0221, not far off a three-week peak of $1.0335 set earlier in the week. Key resistance is seen around $1.0337, a level representing a 61.8 percent retracement of the November decline.