* Dollar slips, traders take profits on last week's gains
* Bernanke seen winning 2nd term, cooling some risk aversion
* Aussie, kiwi edge back up
(Releads, adds comment, updates throughout; previous TOKYO)
By Naomi Tajitsu
LONDON, Jan 25 (Reuters) - The dollar slipped against the euro and higher-yielding currencies on Monday as some investors took profits on the U.S. currency's broad gains last week which had been fuelled by risk aversion.
Reports that embattled Federal Reserve Chairman Ben Bernanke was edging closer to winning confirmation to serve a second term also calmed markets, tarnishing the dollar's safe-haven appeal, after his prospects were seen to be shaky last week.
The euro pulled further away from a near six-month low hit against the dollar last week after concerns about Greece's heavy indebtedness had triggered a stampede out of the common European currency.
The Australianand New Zealand dollars also recovered from their weakest in roughly a month hit last week versus the U.S. unit when signs of growth in China and Beijing's moves to curb bank lending spurred the view of further monetary tightening.
Commodity-linked currencies had suffered as the China news fed speculation that moves to rein in rapid growth may cut demand for natural resources in the country, which is set to overtake Japan as the world's No.2 economy.
Analysts said traders took a breather following the dollar's gains last week, when it rose more than 1 percent on the week against a currency basket and pushed the Australian and New Zealand dollars down 2-3 percent each.
"The market was very volatile last week and we saw a big squeeze on the euro, so there's been some consolidation today," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich.
Analysts said investors would be on the lookout for developments in U.S. President Barack Obama's proposed crackdown on U.S. banks, which had taken markets by surprise last week, as the market gauges its potential impact on the dollar.
By 0835 GMT, the euro was little changed on the day at $1.4135, after climbing as high as around $1.4173 in early trade.
The single currency hovered above $1.4029 hit last week -- its weakest since late July -- when the euro came under broad selling pressure due to growing concerns about Greece's debt problems.
It fell 0.4 percent against the yen to 127.37 yen, staying in range of a nine-month low of 126.55 yen hit on Friday.
The Australian and New Zealand currencies each rose roughly 0.4 percent against the U.S. dollar. Against a currency basket, the dollar was little changed on the day at 78.263.
With few major economic data and events due on Monday, market participants added that the euro would continue to struggle if Greece's fiscal status were seen to be deteriorating.
Policy meetings in Japan and the United States this week would also be in focus, although significant interest rate moves were unlikely, they said. Washington will also release an initial reading of fourth quarter economic growth this week. (Editing by Ruth Pitchford)