USD Remains Strong, But Watch Out Tonight!

<p>&nbsp;The US dollar remained steady trading around highs against major currencies after investors ignored the downgrade of the United States' credit rating by Fitch Ratings.</p><p><br /></p><p>Ratings agency Fitch has downgraded the US to AA+ from AAA in a move that could undermine investor confidence in the country's government and economy.</p><p><br /></p><p>The greenback, which was initially slightly affected by the rating, returned to erase some losses to remain traded stronger than its main rivals.</p><p><br /></p><p>During the European session, the dollar index that measures the strength of the greenback traded hovering around the price of 102.17 against six other major currencies.</p><p><br /></p><p>The release of private sector ADP employment data in the upcoming New York session will be the focus of investors for clues to the NFP report on Friday.</p><p><br /></p><p><br /></p><p>Private sector job growth is forecast to slow in July with an increase of just 191,000 from the 497,000 increase recorded in June.</p><p><br /></p><p>Tracking the movements of other major currencies, the euro and pound traded little changed with prices remaining stuck around lows against the greenback.</p><p><br /></p><p>Meanwhile, the Aussie dollar remained trading higher after touching a new two-month low against the US dollar.</p><p><br /></p><p>The kiwi dollar fell to its weakest level in five weeks after being pushed lower by dismal New Zealand jobs data, supporting expectations for the central bank to further ease tightening.</p><p><br /></p><p>Additionally, the yen's decline was limited following a report from Fitch Ratings, but the currency remained trading weak at a four-week low against the greenback.</p>