Forex trading headlines for Asia Monday 25 August 2014

Gap openings all over the place in early New Zealand this morning with a USD strengthening theme.

EUR/USD was one of the biggest , down more than 50 points with much chatter about Draghi at Jackson Hole implying that the ECB is going to have to have a long hard look at continuing weak inflation in the eurozone.

But it wasn’t confined to EUR weakness by any means, with Cable, CHF, and CAD dropping as well against the dollar.

All stabilised as Asian liquidity improved as the morning passed, with EUR/USD the weakest of this lot.

USD/JPY opened higher, too, but traded mainly sideways as the session progressed.

The AUD showed a gap opening lower, too, not a huge gap down in comparison and it retraced all of its gap and then some as the session ticked over.

NZD/USD was a peculiar one. It opened fairly flat but was smashed lower an hour and a half into the morning, losing more than 60 points before stabilising. Some jitters were expressed in the market concerning NZ politics (see bullets, above), but AUD/NZD buying was also a big factor – to new 2014 highs again today.