NZD Pressured In Early Trade, Fitch Places US On Negative Rating Watch

Kiwi is pressured in early dealing on Thursday continuing the moves seen yesterday after the RBNZ signalled their tightening cycle is over. Fitch has put the US on negative ratings watch as the deadline for an increase in the debt ceiling approaches. They also noted that they see US governance as weaker than other AAA countries.

• NZD/USD is pressured, the pair is down ~0.3%. We sit a touch below the $0.61 handle.Bears target a break of the low from 8 March at $0.6085, a break through here opens $0.60 round number resistance.
• AUD/NZD is ~0.2% firmer, the pair broke the 20-Day EMA yesterday and is ticking away from the measure in early trade.
• Yen spiked higher on the Fitch news however USD/JPY couldn't follow through on the move and losses were pared.
• AUD/USD has dealt in a narrow range thus far with little follow through on moves.
• Cross asset wise; US Equity Futures are higher, e-minis up ~0.5% NASDAQ up 1.4% after Nvidia, the worlds most valuable chipmaker, rose 26% after demand for AI buoyed its sales forecast. US Treasury Yields are marginally softer.
• There is a thin docket in Asia today. Further out we have German GDP and a slew of US data including Q1 GDP, Initial Jobless Claims and Pending Home Sales.