The Australian and NZ dollars appreciated against their major counterparts in the Asian session on Monday, as silver prices rallied amid a surge in demand by retail investors, easing some of the concerns over the volatile trading seen last week.

Investors shifted attention to silver, which has climbed nearly 15 percent since Thursday, after the retail trading frenzy that had shot up the stock value of a struggling video-game retailer GameStop.

The People's Bank of China injected funds into money markets in an attempt to avoid a liquidity squeeze.

The latest survey from the Australian Industry Group revealed that the manufacturing sector in Australia continued to expand in December and January, and at a faster pace, with a combined seasonally adjusted Performance of Manufacturing Index score of 55.3.

That's up from 52.1 in November and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

Data from the Australian Bureau of Statistics showed that the value of owner-occupied home loans in Australia climbed a seasonally adjusted 8.7 percent on month in December, coming in at A$19.94 billion.

That follows the 5.5 percent increase in November.

The aussie advanced to 0.7663 against the greenback, 80.21 against the yen and 1.5832 against the euro, after falling to 4-day lows of 0.7606, 79.69 and 1.5936, respectively in early deals. The next possible resistance for the aussie is seen around 0.70 against the greenback, 82.00 against the yen and 1.54 against the euro.

The aussie bounced off to 1.0644 against the kiwi, from its previous 1-1/2-month low of 1.0623. If the aussie rises further, it may find resistance around the 1.09 level.

The Australian currency edged up to 0.9780 against the loonie, up from near a 5-week low of 0.9741 seen at 5:00 pm ET. The aussie is seen finding resistance around the 0.99 level.

The kiwi rose to 75.41 against the yen, 0.7203 against the greenback and 1.6841 against the euro, off its early low of 74.92 and 4-day lows of 0.7150 and 1.6950, respectively. The kiwi is poised to find resistance around 78.00 against the yen, 0.74 against the greenback and 1.66 against the euro.

Looking ahead, PMI reports from major European economies and U.K. mortgage approvals and Eurozone jobless rate for December are due in the European session.

In the New York session, U.S. ISM manufacturing PMI for January and construction spending for December are set for release.