The U.S. dollar traded mixed to lower against the most major currencies after mixed U.S. economic data. The NY Fed Empire State manufacturing index rose to 27.5 in September from 14.7 in August, exceeding expectations for a gain to 15.0. That was the highest level since October 2009.

The U.S. industrial production declined 0.1% in August, missing forecasts for a 0.3% rise, after a 0.2% gain in July. July's figure was revised down from a 0.4% increase.

The U.S. capacity utilization rate decreased to 78.8% in September from 79.1% in August, missing expectations for an increase to 79.3%. August's figure was revised down from 79.2%.

The greenback remained supported on speculation the Fed will start to hike its interest rate sooner than expected. Market participants are awaiting the Fed's interest rate decision on Wednesday. They expect the Fed will cut its asset purchase program by another $10 billion.

The euro traded higher against the U.S. dollar. Eurozone's seasonally adjusted trade surplus declined to 12.2 billion euros in July from 13.8 billion euros in June.

The British pound traded mixed against the U.S. dollar. Scotland's independence referendum on Thursday continued to weigh on the pound.

The Swiss franc traded higher against the U.S. dollar. Switzerland's producer price index (PPI) declined 0.2% in August, after a flat reading in July.

On a yearly basis, Switzerland's PPI fell 1.2% in August, after a 0.8% drop in July.

The New Zealand dollar traded higher against the U.S dollar in the absence of any major economic reports from New Zealand.

The weaker-than expected Chinese economic data weighed on the kiwi and the Australian dollar. China's industrial production rose 6.9% in August, after a 9.0% in July. Analysts had expected an increase of 8.8%.

Fixed-asset investment in China increased 16.5% in August, missing expectations for a 16.9% rise, after a 17.0% gain in July.

Retail sales in China climbed 11.9% in August, missing forecasts of a 12.1% rise, after a 12.2% increase in July.

China is a major trading partner of New Zealand and Australia.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie fell against the greenback due to the weak economic data from Australia. New motor vehicle sales in Australia fell by 1.8% in August, after a 1.3% decline in July.

On a yearly basis, new motor vehicle sales in Australia dropped by 3.5% in August, after a 0.4% fall in July.

The Japanese yen traded mixed against the U.S. dollar in the absence of any major economic reports from Japan. Markets in Japan were closed for a public holiday.

The yen dropped to the lowest level since September 2008 against the U.S. dollar last week as the Bank of Japan (BoJ) Governor Haruhiko Kuroda said to the Japan's Prime Minister Shinzo Abe on Thursday that the central bank is ready to expand monetary easing measures to reach 2 percent inflation target.