Foreign exchange market. American session: the U.S. dollar traded mixed to higher against the most major currencies despite the weaker-than-expected economic data from the U.S.

The U.S. dollar traded mixed to higher against the most major currencies despite the weaker-than-expected economic data from the U.S. Preliminary services purchasing managers' index declined to 58.5 in August from 60.8 in July, missing forecasts for a drop to 59.2.

New home sales in the U.S. fell by 2.4% to 412,000 units in July, missing expectations for a rise to 426,000 units. That was the slowest pace of new home sales in four months.

June's figure was revised up from 406,000 units.

The greenback remained supported by Friday's comments by Federal Reserve Chair Janet Yellen in Jackson Hole. Janet Yellen said that the U.S. labour market is not yet fully recovered. But she added that the U.S. labour market was improving. The Fed Chair Yellen offered no signal when the Fed will start to raise its interest rate.

Investors speculate that the Fed may hike its interest rate sooner than expected.

The euro traded mixed against the U.S. dollar. Comments by the ECB President Mario Draghi weighed on the euro. The European Central Bank (ECB) President Mario Draghi said in Jackson Hole on Friday the ECB could add new stimulus measures should inflation decline further. He also said inflation expectations were showing a significant fall.

The weaker-than-expected economic data from Germany also weighed on the euro. Ifo released its indices for Germany. The Ifo Business Climate Index declined to 106.3 in August from 108.0 in July, missing expectations for a drop to 107.1.

The Ifo Current Assessment decreased to 111.1 in August from 112.9 in July.

The Ifo Expectations dropped to 101.7 in August from 103.4 in July.

The National Bank of Belgium released its report on business confidence. The business sentiment index declined to -7.3 in August from -7.5 in July, beating expectations for a fall to -8.3.

The British pound traded mixed against the U.S. dollar in the absence of any major economic reports in the UK. Markets in the UK are closed for a public holiday.

The New Zealand dollar traded mixed against the U.S dollar in the absence of any major reports in New Zealand. In the overnight trading session, the kiwi dropped against the greenback. Investors speculate the Reserve Bank of New Zealand intervened in the market. New Zealand's central bank has recently said the kiwi is too high and mentioned the possibility it could intervene in the market by selling the local currency.

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

The Japanese yen traded mixed against the U.S. dollar due to strong U.S. currency. No major reports were released in Japan.

The Bank of Japan (BoJ) Governor Haruhiko Kuroda said in Jackson Hole on Saturday that the stimulus measures by Japan's central bank were proving effective. Kuroda also said Japan's labour market is showing "significant improvement. He added the BoJ will continue its accommodative monetary policy until the 2% inflation target is met.