Greenback Firmer In Asia, Fitch Places US On Negative Rating Watch

The greenback is firmer in Asia today, BBDXY is up ~0.2%. Fitch has put the US on negative ratings watch as the deadline for an increase in the debt ceiling approaches. US Tsy released a statement noting that the Fitch report shows the swift need for bipartisan action. They also said that brinkmanship over the debt limit does serious harm to business, raises short term borrowing costs and threatens the credit rating of the US.

• Kiwi is pressured and is the weakest performer in the G-10 space at the margins, NZD/USD has extended yesterday's post-RBNZ losses and is down a further 0.4% today. We currently sit a touch above year to date lows.
• AUD/USD is down ~0.2%, the low from May 24 ($0.6532) has been broken. The next downside support is at $0.6403 76.4% retracement of the Oct-Feb bull cycle.
• Yen is marginally pressured, USD/JPY is ~0.1% firmer. Wednesday's highs have been breached and we sit at the highest level since late November.
• Elsewhere in G-10, EUR and GBP are both ~0.2% lower.
• Cross asset wise; US Equity Futures are higher, e-minis up ~0.4% NASDAQ up 1.4% after Nvidia, the world's most valuable chipmaker, rose 26% after demand for AI buoyed its sales forecast. 2 Year US Treasury Yields are ~3bps higher.
• In Europe today we have the final read of German GDP, further out a slew of US data crosses including Q1 GDP, Initial Jobless Claims and Pending Home Sales.