FOREX: AUDUSD Rises Back to 0.6700 Amid Equity Strength

• E1.115bln of the 3.20% Jan-26 BTP Short Term (ISIN: IT0005584302) at 100.120
• E1.020bln of the 4.50% Mar-26 BTP (ISIN: IT0004644735) at 100.577
• E1.112bln of the 3.80% Apr-26 BTP (ISIN: IT0005538597) at 100.585
• E1.015bln of the 3.10% Aug-26 BTP Short Term (ISIN: IT0005607269) at 100.681
• E1.264bln of the 3.85% Sep-26 BTP (ISIN: IT0005556011) at 101.305
• E0.720bln of the 0.55% May-26 BTP Italia (ISIN: IT0005332835) at 99.549
• E0.754bln of the 0.50% Apr-26 CCTeu (ISIN: IT0005428617) at 100.222

• The risk backdrop remains stable Wednesday, allowing the major indices and crypto markets to edge higher and provide a negative tilt to the US dollar. The greenback tone was also set late last night as President Trump’s nod towards Kevin Hassett potentially becoming the next Fed Chair confirms the dovish bias to market Fed pricing for 2026.
• These dynamics have prompted GBP and the Scandies to outperform on the session. For GBPUSD specifically, spot has edged to a fresh recovery and post-budget high, with momentum building on the better-than-expected PMI print. Prices are now meeting an uptrendline drawn off the Nov13 high on the 15min candle chart - meaning further strength here could trigger more on the follow through. A close back above the 50-day EMA for cable would also be the first since early October. Mirroring the move, EURGBP has firmly rejected the test of 0.88 overnight, erasing the majority of Monday's rally.
• For EURUSD, we are currently testing above key resistance and the bull trigger at 1.1656. The moves come despite the latest Kremlin commentary pouring cold water on the prospects of a peace deal, with prediction markets' odds for a ceasefire by the end of '26 falling below 50%.
• Despite a weaker-than-expected Q3 GDP print, stronger domestic demand growth is likely to keep the RBA in cautious mode, underpinning the firm AUD recovery. Elsewhere, softer-than-expected Swiss CPI figures did little to move the Swiss needle.
• A wide set of US data is scheduled for today, including weekly MBA Mortgage Applications, November ADP, September import / export prices, September IP, and ISM Services.

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