2 Attachment(s) AUD/USD drop 20-odd pips to your session low of 0.7455 after news hit the wires that ratings agency Moody's has downgraded China's long term local currency and foreign currency issuer ratings to a 1 from Aa3 and altered the outlook to Stable from Negative.

The pair retreated in the previous day's a lot of of 0.7517 on the broad-based 75000 recuperate. Marc Chandler, Head of Global Markets Strategy, Brown Brothers Harriman states, “the downside momentum in the US dollar faded it could be an early signal the market has discounted the current news stream, which contains worries the political turmoil in the Washington will adversely influence the President's economic program.”

The 83000 also re-gained bid tone as the emphasis shifted to the June Fed rate hike odds, which as per Bloomberg calculations stand at 95%. The rate hike odds are put by the CME product at 83%.

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