The U.S. dollar traded mixed to higher against the most major currencies after the better-than-expected NAHB housing market index. The NAHB housing market index climbed to 55.0 in August from 53.0 in July. Analysts had expected the index to remain unchanged at 53.0.

Market participants continued to monitor closely geopolitical tensions.

The euro declined against the U.S. dollar due to speculation that the European Central Bank will add new stimulus measures.

Eurozone's trade surplus dropped to 13.8 billion euros in June from a surplus of 15.2 billion euros in May, missing expectations for a decline to 14.9 billion euros. May's figure was revised down from a surplus of 15.3 billion euros.

The British pound traded mixed against the U.S. dollar. The UK currency was supported by the BoE governor's comments. The Bank of England Governor Mark Carney told the Sunday Times on Sunday that the Bank of England don't need to wait for wage growth to rise its interest rate.

The Canadian dollar traded slightly lower against the U.S. dollar after the foreign securities purchases in Canada. Canada's foreign securities purchases dropped by C$1.07 billion in June, missing expectations for a C$14.68 billion rise, after an increase of C$21.42 billion in May. May's figure was revised down from a rise of C$21.43 billion.

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

The Australian dollar traded mixed against the U.S. dollar after weaker new motor vehicle sales in Australia. New motor vehicle sales in Australia declined 1.3% in July, after a 1.7% rise in June.

On a yearly basis, new motor vehicle sales in Australia fell 0.4% in July, after a 2.2% drop in June.

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