The euro faced fresh pressure in Asian trade on Monday after German Chancellor Angela Merkel failed to form a government at the weekend, fuelling uncertainty in Europe's biggest economy.

Traders tracked a sell-off on Wall Street, where all three main indexes finished in the red on profit-taking and worries that US lawmakers will struggle to push through Donald Trump's tax-cut plans.

While the House of Representatives approved its version of the reform legislation and a key Senate panel cleared a different version, the Republicans' wafer-thin majority in the Senate mean they will have a tough fight to clear the upper chamber.

Treasury Secretary Steven Mnuchin predicted a final draft would reach Trump's desk by Christmas, but observers said that time-frame would be tough given the tight margins and some senators' concerns over some of the measures.