The U.S. dollar traded mixed to lower against the most major currencies. The greenback remained supported by Friday's U.S. economic data. The Reuters/Michigan consumer sentiment index rose to 86.4 in October from 84.6 in September, beating forecasts of a decline to 84.3.

Housing starts in the U.S. climbed 6.3% to 1.017 million annualized rate in September from a 957,000 pace in August, in line with expectations.

The euro traded higher against the U.S. dollar. The European Central Bank has started buying covered bonds to stimulate the economy in the Eurozone.

Germany's Bundesbank said in its monthly bulletin that Germany's economy barely grew at in the third quarter and the outlook for the fourth quarter is cautious. Bundesbank noted that the economy in Germany was unlikely to enter recession.

German producer price index was flat in September, missing expectations for a 0.1% gain, after a 0.1% decline in August.

On a yearly basis, German producer price index fell 1.0% in September, in line with expectations, after a 0.8% drop in August.

Eurozone's current account surplus declined to 18.9 billion euros in August from a surplus of 21.6 billion euros in July, missing expectations for a current account surplus of 21.3 billion euros. July's figure was revised up from a surplus of EUR18.7 billion.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports from the U.K.

The Canadian dollar traded lower against the U.S. dollar after the release of Canadian wholesale sales. Wholesale sales in Canada climbed 0.2% in August, in line with expectations, after a 0.2% decline in July. July's figure was revised up from a 0.3% drop.

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

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

The Aussie was supported by news from China. A Chinese government official said the China's central bank is planning to inject about 200 billion yuan into some lenders.

The Japanese yen traded mixed against the U.S. dollar. In the overnight trading session, the yen decreased against the greenback on Government Pension Investment Fund (GPIF) report. The Nikkei newspaper said that Japan's Government Pension Investment Fund will raise its target for foreign bonds and shares to around 30% from 23%.

Comments by the Bank of Japan Governor Haruhiko Kuroda also weighed on yen. He said on Monday that Japan's economy "will continue to recover moderately as a trend". Kuroda added that the annual inflation rate is expected to remain at around 1.25% "for some time".