* Euro last little changed in volatile trade
* Euro falls to one-week low after U.S. consumption data
* U.S. ISM also weighs on risk tolerance
* Bernanke gives no QE hint (Updates prices, adds quotes and details)
NEW YORK, March 1 (Reuters) - The euro was little changed in volatile trading on Thursday after falling to a one-week low on U.S. economic data which had reignited doubt about the strength of the recovery.
Real personal consumption in January was unchanged from the prior month, making it the third month in a row it was flat. . A separate report showing the pace of growth in the U.S. manufacturing sector unexpectedly slowed in February, added to risk aversion and weighed on the euro.
The euro had already been weak before New York opened after a huge injection of cash by the European Central Bank on Wednesday and lingering concerns about debt and the fragile euro zone economy.
Testimony from Federal Reserve Chairman Ben Bernanke to a Senate panel after testimony to Congress on Wednesday was closely watched but in the final analysis had minimal impact.
"The manufacturing ISM (was) more important and it should keep the pressure on the euro today," said Joseph Trevisani, chief market strategist at Worldwide Markets in Woodcliff Lake, New Jersey.
The euro was little changed at $1.3324 after touching a one-week low of $1.3280, breaking near-term support at its 100-day simple moving average of $1.3293. Traders had earlier said a fall below that level could push it toward $1.32. The session peak posted at $1.3356 in early trading.
The euro is now down more than a cent from three-month high of $1.3485 touched on Wednesday, according to Reuters data. The euro also posted its best monthly performance in February since October.
Repeating Wednesday's prepared remarks, the Fed chairman cautioned that the recent steep drop in the U.S. unemployment rate was unlikely to continue given a still soft economy, but he stopped short of signaling a further easing of monetary policy.
"The market is starting to realize that QE3 is off the table though Bernanke still has a cautious tone," said David Song, currency analyst at DailyFX. "Bernanke is a little more dovish than yesterday, highlighting concerns about fiscal responsibility and that the debt situation is unsustainable."
Attention on Thursday also turned to a European Union summit and a meeting of euro zone finance ministers amid discussion of Greece's progress on meeting the terms of its latest bailout. Analysts said this may highlight the risks of Greece struggling to comply with the harsh austerity measures demanded of it. .
Traders reported early euro selling by Asian central banks and macro funds, with many cutting euro positions as the ECB's injection of 530 billion euros in three-year funds had been broadly priced in.
Traders said the $1.35 level could now act as stiff resistance if the euro moves higher, with many investors looking to sell into any rally.
Morgan Stanley analysts were more upbeat on the euro's immediate prospects, raising their end-March euro/dollar forecast to $1.34 from $1.27 as the ECB funds eased banking and sovereign debt strains. They still expect the euro to decline sharply by the end of the year, however, though they now see it at $1.19 rather than $1.15.
Investors are mindful that the euro zone's structural debt problems could not be solved unless the economy picks up.
The dollar fell 0.2 percent against the yen to 81.09 yen. However, it remains close to a nine-month high touched on Monday as the yen remains under pressure after Bank of Japan easing measures.
UBS strategists said that they expected the Fed to normalize rates much earlier than the Bank of Japan, a policy divergence that should lead to a widening of the gap between two-year Treasuries and Japanese government bond yields.
The yield gap has a tight correlation with the dollar/yen pair and a widening should see the dollar drift higher. As such, UBS expects the dollar to rise to 85 yen by 2012 and 90 yen by 2013 and repatriation flows ahead of the Japanese financial year end in March are unlikely to be yen supportive.
The Australian dollar rose 0.7 percent to $1.0802, helped by robust Chinese PMI data, though it was well below a seven-month peak touched on Wednesday. (Reporting by Nick Olivari; Editing by James Dalgleish)