By Dan Bell
The NZD/USD made a new post float high over 0.8400 this morning after credting rating agency Moody's Investor Services placed the Aaa bond rating of the United States government on review for possible downgrade.
The United States may lose its top-notch credit rating in the next few weeks if lawmakers fail to increase the country's debt ceiling, forcing the government to miss debt payments, Moody's Investors Service warned on Wednesday.
Moody's was the first among the big-three rating agencies to place the United States' Aaa rating on review for a possible downgrade, which means a negative rating action is impending.
In a statement, Moody's said it sees a "rising possibility that the statutory debt limit will not be raised on a timely basis, leading to a default on U.S. Treasury debt obligations."
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Dan Bell is the senior currency strategist at HiFX in Auckland. You can contact him here
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