(Updates levels throughout)
The dollar took U.S. President Donald Trump's impeachment in stride on Thursday while its Australian counterpart rallied after a surprise fall in the country's unemployment rate.
The British pound GBP=D3 remained under pressure on renewed fears of a chaotic exit from the European Union. It was last at $1.3081 after sliding nearly 2% in as many days.
Dollar traders were sanguine after a majority of lawmakers in the U.S. House of Representatives voted to impeach Trump.
The dollar was a shade firmer against the safe haven yen JPY= at 109.56. An index that tracks the dollar against six major currencies hovered at 97.347, not far from a six-day high of 97.475 touched on Wednesday. .DXY
"It is unlikely that the Senate will support the motion when it votes in January, as is required to remove Trump from office," ANZ economists wrote in a note.
The Aussie AUD=D3 climbed as high as $0.6883 after the robust jobs data suggested the country's labour market might have enough life in it to lessen the need for more interest rate cuts. It was last at $0.6878.
In New Zealand, better-than-expected third quarter economic growth data sent the kiwi NZD=D3 bouncing off a one-week low at $0.6592.
Risk sensitive currencies such as the Aussie and the kiwi started December on a firm footing after a preliminary U.S.-China trade deal and a landslide Conservative election win in the UK removed two major uncertainties hanging over markets.
However, fears have resurfaced this week as the spectre of a U.S.-led tariff war has not completely disappeared with traders awaiting more details on the "phase one" deal with Beijing.
U.S. Trade Representative Robert Lighthizer said on Tuesday that the United States may raise tariffs on European goods as it tries to shrink its chronic trade deficit with the continent, re-igniting worries of the prospects of the export-driven euro.
The euro EUR held close to Wednesday's trough of $1.1109 against the dollar, shrugging off a better-than-expected survey of German business morale. It was last at $1.1126.
"The most significant piece of news overnight has been the German December IFO survey, which... has shown evidence that the German economy may be in the process of pulling itself up by its boot straps," said Ray Attrill, Sydney-based head of forex strategy at National Australia Bank.
"Improvement in the German – and broader Eurozone – economy – is fundamental to our expectation for a softer U.S. dollar and stronger Euro next year."
Markets will focus on interest rate decisions from the Bank of England, which is seen unlikely to change policy. At its previous meeting, two of the central bank's nine policymakers voted to cut interest rates.
