The Australian dollar slipped as robust Chinese growth and higher inflation data raised speculation of further monetary tightening, which could hurt commodity-linked currencies. Analysts said the US currency benefited from a slide in global share prices and the dollar index's vault above its 200-day moving average on Thursday.
The euro dropped under its 200-day moving average against the dollar on Wednesday for the first time since May 2009. Analysts said this suggested it may be prone to more weakness. "We see positive momentum in the dollar continuing due to risk appetite and problems related to the euro zone," said Kasper Kirkegaard, currency strategist at Danske in Copenhagen.
The euro fell 0.5 percent on the day to $1.4028 according to Reuters data, its lowest since late July. By 1126 GMT, it was at $1.4040. Option barriers were seen at $1.4000, traders said. The dollar index rose to 78.814, its highest since early September, and pushed above its 200-day moving average at 78.515 for the first time since May last year.
The Australian dollar slipped 0.1 percent to $0.9080 after, after falling some 1.8 percent the previous day. It was up 0.4 percent against the yen at 83.35 yen, having earlier fallen below 83 yen. Broad yen weakness pushed the dollar 0.6 percent higher to 91.85 yen.