The yen gained in Japan on Friday, with data supporting the currency on consumer prices and unemployment.
USD/JPY changed hands at 111.12, down 0.12%, while AUD/USD traded at 0.7970, down 0.04%.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, rose by 0.51% to 93.73.
In Japan, household spending jumped 2.3 in June month on month, compared to a 0.6% rise seen, seen while it rose 1.5% at an annual pace compared to a gain of 0.6% expected. The unemployment rate dipped to 2.8% from 3.1% in May.
Ahead, Japan reports retail sales with a 2.3% increase seen for June on year. National CPI rose 0.4% as expected on year in June and national core CPI gained 0.2%, beating a 0.1% increase seen.
Overnight, the dollar traded higher against a basket of global currencies on Thursday, despite a mixed bag of economic data pointing to potential headwinds in the U.S. labor market.
Better-than-expected durable goods orders data for June offset initial jobless claims data that undershot expectations, pushing the dollar off 14-month lows sustained in the prior session. The U.S. Department of Labor reported Thursday that initial jobless claims rose by more than expected to 244,000 in the week ended July 23, missing forecasts of a 7,000 decline.
In a separate report, core durable goods orders rose by 6.5% in June, the Commerce Department said Thursday, reflecting a sharp jump in orders for transportation equipment.
The dollar had fallen to 14-month lows in the prior session, following the Federal Reserve's decision to keep its benchmark rate unchanged amid jitters among Fed members about the slowdown inflation.
The sharp rebound in the dollar weighed on the pound and euro, as both currencies pared recent gains.
GBP/USD fell a day after provisional economic growth data, measured by gross domestic product (GDP), met economists' forecasts. UK GDP is estimated to have increased by 0.3% in the second quarter, an improvement from the first quarter, the Office of National Statistics said Wednesday.