FRANCE AUCTION PREVIEW: Heavy LT OAT Supply Due Shortly

• In the aftermath of the RBA, AUD remains among the strongest in G10, with the latest downtick for the DXY propelling AUDUSD back towards session highs. 0.6650 has continued to hold across the last three sessions, and a break above would likely prompt some momentum demand.
• Alongside the RBA’s expected hold at 3.6%, the board sees the balance of risks tilted toward a potential rate hike in 2026 to contain inflation, with cuts firmly off the table, according to Governor Bullock. She added that policymakers will reassess the restrictiveness of the current cash rate in the new year. Westpac noted that AUDUSD “dips are likely to remain shallow and well supported against this backdrop.”
• For AUDUSD, a strong impulsive bull wave remains intact, bolstered by moving average studies recently crossing into a bull-mode position. Above here, there is a small level at 0.6660, however, 0.6707 remains a key resistance, the Sep 17 high.
• With both the RBA and RBNZ decisions out of the way, and NZDUSD trading all the way back to its medium-term pivot at 0.5800, this could be an opportunity to re-establish longs in AUDNZD, which has been in a very strong uptrend across the second half of the year. The 50-day EMA provided firm support around the 1.1400 handle last week, bolstering the chances of a return to 12-year highs above the 1.16 handle. 

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