The U.S. dollar traded lower against the most major currencies in the absence of any major economic reports from the U.S.

The euro traded higher against the U.S. dollar. German adjusted retail sales climbed 2.9% in January, after a 0.6% gain in December. December's figure was revised up from a 0.2% increase. Analysts had expected retail sales to rise 0.6%.

Eurozone's producer price index dropped 0.9% in January, missing expectations for a 0.6% decrease, after a 1.0% decline in December.

The British pound traded higher against the U.S. dollar. Markit's and the Chartered Institute of Purchasing & Supply's construction purchasing managers' index (PMI) for the U.K. rose to 60.1 in February from 59.1 in January, beating expectations for a decline to 59.0.

The Canadian dollar rose against the U.S. dollar after the mostly better-than-expected Canadian economic data. Canada's GDP increased 0.3% in December, exceeding expectations for a 0.1% gain, after a 0.2% fall in November.

The increase was driven by higher manufacturing output.

The Industrial Product Price Index (IPPI) fell 0.4% in January, beating forecasts for a 2.2% drop, after a 1.5% decrease in December. December's figure was revised up from a 1.6% decline.

The decline was driven by lower prices for energy and petroleum products.

The Raw Materials Price Index (RMPI) dropped 7.7% in January, missing expectations for a 6.8% fall, after a 7.5% decline in December. December's figure was revised up from a 7.6% decrease.

The drop was driven by lower prices for crude energy products.

The Swiss franc traded higher against the U.S. dollar. Switzerland's GDP rose 0.6% in the fourth quarter, beating expectations for a 0.3% increase, after a 0.7% gain in the third quarter. The third quarter's figure was revised up from a 0.6% gain.

On a yearly basis, Switzerland's economy grew at 1.9% in the fourth quarter, after a 1.9% increase in the third quarter.

The New Zealand dollar traded higher against the U.S. dollar. In the overnight trading session, the kiwi increased against the greenback in the absence of any major economic reports from New Zealand.

The Australian dollar traded higher against the U.S. dollar. In the overnight trading session, the Aussie rose against the greenback after the Reserve Bank of Australia's (RBA) interest rate decision. The RBA kept its interest rate unchanged at 2.25%. Analysts had expected the RBA to cut its interest rate to 2.00%.

The RBA Governor Glenn Stevens said today that further interest rate cut is possible, "in order to foster sustainable growth in demand and inflation consistent with the target".

Building approvals in Australia climbed 7.9% in January, beating expectations for a 1.7% decline, after a 2.8% decrease in December. December's figure was revised up from a 3.3% fall.

Australia's current account deficit narrowed to A$9.6 billion in the fourth quarter from A$12.1 billion in the third quarter, beating forecasts for a rise to A$10.8 billion. The third quarter's figure was revised up from a deficit of A$12.5 billion.

The Japanese yen traded higher against the U.S. dollar. In the overnight trading session, the yen increased against the greenback. Japan's monetary base increased 36.7% in February, after a 37.4% gain in January.

Labour cash earnings in Japan climbed 1.3% in January, exceeding expectations for a 0.6% rise, after a 1.3% gain in December. December's figure revised down from 1.6% increase.