By Kevin Buckland

TOKYO (Reuters) -The dollar traded near a one-week high versus major peers on Friday, on track to snap a five-week losing streak, after robust economic data pared bets for aggressive Federal Reserve interest rate cuts.

The euro languished close to a two-week low to the dollar as cooling inflation in Germany and Spain boosted the case for European Central Bank easing.

The yen held near the closely watched 145 per dollar level after weakening on Thursday, as the greenback tracked a rise in U.S. Treasury yields.

The Japanese currency largely ignored data on Friday showing core consumer prices in Tokyo climbing at a faster-than-expected 2.4% in August, again topping the Bank of Japan's 2% target, although a measure that also strips out energy costs rose by just 1.6%.

Overnight, U.S. data showed gross domestic product (GDP) grew a 3.0% annualised rate in the second quarter, an upward revision from the 2.8% rate reported last month. Economists polled by Reuters had forecast GDP would be unrevised.

"That's been the market mover from the price action overnight, particularly when you look at currencies and U.S. Treasury yields," said Rodrigo Catril, senior FX strategist at National Australia Bank (OTC:NABZY), referring to the GDP reading.

"The takeaway there - the highlight - is that the consumer was stronger than had previously been thought," he added. "The exceptionalism of the U.S. was still evident in Q2."

Traders now more strongly favour a quarter-point Fed rate reduction on Sept. 18, laying only 34% odds of a 50-basis point (bp) cut, down from 38% a day earlier, according to the CME Group's (NASDAQ:CME) FedWatch Tool.

The U.S. dollar index - which measures the currency against a basket of six major peers - was little changed at 101.40 as of 0505 GMT, after rising 0.36% on Thursday and touching the highest since Aug. 22 at 101.58.

It is on course for a 0.7% gain this week, which would be its best week since the start of April. Over August though, it is set for a drop of about 2.5%, which would be its worst month since November.

The dollar eased 0.13% to 144.80 yen, after rising as high as 145.55 overnight for the first time since Aug. 23.

The euro was flat at $1.10755 and dropped as low as $1.10555 on Thursday. Later in the day, more consumer inflation readings from around Europe are due, including France, Italy and the euro zone as a whole.

The United States also sees the release of the core personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge.

Sterling was steady at $1.3165 after dipping to $1.3146 overnight for the first time since Aug. 23.

The Australian and New Zealand dollars hung near their highest levels this year, with recent data pointing to less need for imminent rate cuts.

The Aussie rose slightly to $0.68015 after hitting the highest since Jan. 2 at $0.6824 a day earlier, as it continued to draw support from hotter-than-expected consumer price figures this week. The currency shrugged off an unexpected stagnation in retail sales data on Friday.

New Zealand's kiwi added 0.08% to $0.6262, after reaching $0.6298 on Thursday for the first time since Jan. 2. A survey of consumers on Friday showed a pick-up from deep lows in August, after business confidence surged to the highest in a decade, a survey showed the previous day.

China's yuan firmed to a two-month high on Friday, heading for its biggest monthly jump since November, amid growing corporate demand for the Chinese currency as expectations heighten for U.S. rate cuts.

Spot yuan strengthened as far as 7.0895 per dollar before last changing hands at 7.0913, on track for a rise of about 2% for August.

"In the short term, we cannot rule out the possibility of a 'stampede' for currency conversion" that could boost the yuan above 7.0 per dollar, China International Capital Corp (CICC) said in a note.