Aug. 25: Asian session
Asian stocks swung between gains and losses amid low trading volume as investors weighed comments from central bank leaders for clues to monetary policy ahead of conflict negotiations between Russia and Ukraine.
USD/JPY opened with a gap up at 104.25. EUR/USD opened with a gap down at $1.3200 and then tested $1.3185. Euro fell as Mario Draghi’s comments raised prospects of more policy easing as early as next week. GBP/USD opened with a gap down at $1.6546 and the recovered to Friday’s lows in the $1.6565 area. There’s a bank holiday in the UK today.
AUD/USD recovered to $0.9310 after a quick dip to $0.9280 in early Asia. NZD/USD dropped by 60 pips, finding some support around $0.8330. Increased demand for AUD/NZD pressured the overall kiwi demand – the cross renewed the 2014 highs today. New Zealand election on September 20 is coming in focus.