The U.S. dollar rebounded from its recent lows against its most major counterparts in the European session on Friday, after the release of mixed jobs data that showed the economy created fewer jobs than expected in September, but the jobless rate dropped.

Data from the Labor Department showed that U.S. employment increased less than expected in the month of September.

The report said non-farm payroll employment rose by 136,000 jobs in September compared to economist estimates for an increase of about 145,000 jobs.

Meanwhile, the increases in employment in July and August were upwardly revised to 166,000 jobs and 168,000 jobs, respectively, reflecting the addition of 45,000 more jobs than previously reported.

The Labor Department also said the unemployment rate fell to 3.5 percent in September from 3.7 percent in August. Economists had expected to unemployment rate to remain unchanged.

Data from the Commerce Department showed that the U.S. trade deficit widened more than anticipated in August.

The report said the trade deficit widened to $54.9 billion in August from $54.0 billion in July. Economists had expected the trade deficit to widen to $54.5 billion.

Recent data on manufacturing and services came in well below expectations, fueling concerns over a significant slowdown in economy.

Market participants widely expect the Federal Reserve to cut interest rates at its upcoming meeting on October 30.

The currency dropped against its major rivals in the previous session, excepting the franc.

The greenback recovered to 1.0957 against the euro, from a low of 1.0997 hit at 8:30 am ET. The greenback is seen finding resistance around the 1.06 level.

Survey data from IHS Markit showed that Germany's construction sector expanded modestly in September, led by a growth in housing activity that offset slower declines in commercial and civil engineering.

The construction purchasing managers' index, or PMI, rose to 50.1 in September from August's 62-month low of 46.3. Any reading above 50 indicates expansion in the sector.

Reversing from a low of 1.2357 touched at 10:15 pm ET, the greenback appreciated to 1.2279 against the pound. The next possible resistance for the greenback is seen around the 1.21 level.

The greenback reached as high as 107.13 against the yen, following a decline to 106.56 at 8:30 am ET. Next immediate resistance for the greenback is seen around the 109.00 level.

Following a 9-day decline to 0.6337 against the kiwi at 8:30 am ET, the greenback bounced off to 0.6307 immediately. Should the greenback rises further, it may find resistance around the 0.61 level.

In contrast, the greenback fell to a 2-day low of 0.9925 against the franc, compared to 0.9987 hit late New York Thursday. On the downside, 0.97 is possibly seen as the next support level for the greenback.

The greenback declined to a 2-day low of 1.3297 against the loonie from Thursday's closing value of 1.3334. The currency is likely to locate support around the 1.30 level.

Though the greenback recovered from data-led decline against the aussie, it was short-lived. The greenback was trading at 0.6762 versus the aussie, near a 3-day low of 0.6766 hit at 8:30 am ET. The currency may locate support around the 0.71 mark, if it weakens further.

Data from the Australian Bureau of Statistics showed that Australia's retail sales increased in August.

Retail sales advanced 0.4 percent on month, following a flat growth a month ago. This was the fastest growth in four months. However, the pace of growth was slightly slower than the expected 0.5 percent.

Looking ahead, Canada Ivey PMI for September will be released shortly.

Fed Chairman Jerome Powell will deliver a speech in Washington at 2:00 pm ET.

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