The U.S. dollar traded mixed to lower against the most major currencies due to profit taking. No major economic reports were released in the U.S.

The euro traded higher against the U.S. after German Finance Minister Wolfgang Schaeuble said comments by European Central Bank (ECB) President Mario Draghi in Jackson Hole were "overinterpreted". Mario Draghi said in Jackson Hole the ECB could add new stimulus measures should inflation decline further.

The Gfk consumer climate index dropped to 8.6 in August from 9.0 in July, missing expectations for a decline to 8.9. That was the first decline since January 2013.

The British pound traded higher against the U.S. dollar in the absence of any major economic data in the UK.

The Swiss franc traded higher against the U.S. dollar. The UBS consumption Indicator fell to 1.66 in July from 2.07 in June. June's figure was revised up from 2.06.

The New Zealand dollar traded mixed against the U.S dollar. In the overnight trading session the kiwi increased after Fonterra, a leading multinational dairy company based in New Zealand, affirmed milk price. The company said it expected global milk prices to improve later in the year. The company also announced a joint venture with Beingmate Group to produce infant formula for the Chinese market.

Fonterra is the world's biggest dairy exporter.

New Zealand's food price index declined 0.7% in July, after 1.4% rise in June.

The Australian dollar traded mixed against the U.S. dollar. In the overnight trading session, the Aussie rose after the weaker-than-expected construction work done data from Australia. Construction work done in Australia declined 1.2% in the second quarter, missing expectations for a 0.4% fall, after a 0.4% decline in the first quarter. The first quarter figure was revised down from a 0.3% increase.

The Japanese yen traded mixed against the U.S. dollar in the absence of any major reports in Japan.