The US dollar slipped in Asian trade on Wednesday, moving off multi-week highs against euro, pound, Aussie dollar and New Zealand dollar, after rising sharply in the previous session which saw an unexpected Korean crisis providing the greenback with safe-haven interests.

Safe-haven rally done, key data awaited for USD

North Korean troops fired artillery towards South Korea's Yeonpyeong island, which is very near the disputed Yellow Sea border, at 1424 on Tuesday. Several houses were set on fire and a number of civilians and troops injured according to South Korea. South returned fire, raised its military alert level and convened an emergency meeting in an underground war room.

The unexpected development triggered panic across markets helping the dollar touch 2-month high versus the euro and 1-month highs against the pound, Australian dollar and the kiwi dollar.

Against a broadly weak Japanese yen, the dollar was little changed early in Asia. Even though trading in currencies was largely lackluster ahead of Thursday's US holiday, key US data including October durable goods sales, Reuters/Michigan consumer sentiment for November, October personal income and weekly jobless data could impact the greenback depending upon the outcome.

Euro, pound

As of 05:55 GMT, the US dollar was at 1.3402 against the euro, moving off the 2-month high hit on Tuesday. At its current level, the dollar was 0.23 percent weaker from its previous close of 1.3371.

Germany's IFO business climate data for November is due later in the day, which is likely to guide deals in the single currency. Market widely expects the climate index to edge lower to 107.5, from 107.6 in the previous month.

The greenback slipped to 1.5818 against the sterling, bouncing off Tuesday's 1-montyh high of 1.5757. The buck is now 0.25 percent weaker from Tuesday. The data watched for the pair during the day is Britain's third quarter gross domestic output, which market sees rising 0.8 percent from the previous quarter.

Versus Asian majors

Despite weaker-than-expected Australian data, the greenback fell off Tuesday's near 1-month high of 0.9706 versus the Aussie dollar on Wednesday. At 05:55 GMT, the dollar was at 0.9798 per Aussie, 0.75 percent down on the day.

Australia's completed construction works fell 2.1 percent in third quarter, after rising 4.5 percent in the previous quarter and against the market consensus of a 2.1 percent rise in the third, data showed on Wednesday.

The US dollar was at 0.7671 against its New Zealand counterpart, moving off the near 1-month high of 0.7573 hit on Tuesday. At its current level, the buck was 1.08 percent weaker from its previous close.

After Tuesday's excessive rally into safer assets from risky ones, the mood changed on Wednesday, leading to the weakening of the Japanese unit. The greenback was at 83.2 against the yen from Tuesday's close of 83.16, but down 0.78 percent from a 1-1/2-month high of 83.85 hit in the previous session.

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