The U.S. dollar traded higher against the most major currencies after the U.S. economic data. The preliminary U.S. manufacturing purchasing managers' index remained unchanged at 57.9 in September, missing expectations for an increase to 58.1.

The Federal Reserve Bank of Richmond's manufacturing index climbed to 14 in September from 12 in August, beating forecasts for a decrease to 10.

The euro rose against the U.S. dollar despite the weak manufacturing and services purchasing managers' index from the Eurozone. Eurozone's preliminary manufacturing purchasing managers' index (PMI) declined to 50.5 in September from 50.7 in August, missing expectations for a fall to 50.6.

Eurozone's preliminary services PMI decreased to 52.8 in September from 53.1 in August, missing expectations for a rise to 53.2.

Germany's preliminary manufacturing purchasing managers' index fell to 50.3 in September from 51.4 in August, missing expectations for a decline to 51.3.

Germany's preliminary services PMI rose to 55.4 in September from 54.9 in August, beating expectations for a drop to 54.6.

France's preliminary manufacturing purchasing managers' index increased to 48.8 in September from 46.9 in August, exceeding expectations for a gain to 47.1.

France's preliminary services PMI dropped to 49.4 in September from 50.3 in August, missing expectations for a decrease to 50.2.

The British pound traded lower against the U.S. dollar. The number of mortgage approvals decreased to 41,588 in August from 42,715 in July, missing expectations for an increase to 42,900.

The U.K. public sector net borrowing posted a surplus of £10.9 billion in August, after a deficit of £0.47 billion in July. July's figure was revised from a deficit of £1.10 billion. Analysts had expected a surplus of £10.3 billion.

The Canadian dollar dropped against the U.S. dollar after Canadian retail sales. Retail sales in Canada declined 0.1% in July, missing expectations for a 0.4% rise, after a 1.2% increase in June. June's figure was revised up from a 1.1% gain.

Canadian retail sales excluding auto sales dropped 0.6% in July, missing expectations for a 0.1% fall, after a 1.5% increase.

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

Market participants are awaiting Fonterra's annual results on Wednesday.

In the overnight trading session, the New Zealand dollar, Australian dollar and yen were supported by the better-than-expected preliminary Chinese HSBC manufacturing purchasing managers' index. The HSBC manufacturing purchasing managers' index rose to 50.5 in September from 50.2 in August, beating expectations for a decline to 50.0

The Australian dollar declined against the U.S. dollar in the absence of any major economic reports from Australia.

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