[MARKET ANALYSIS] USD marginally firmer; AUD outperforms; price action quiet elsewhere

DXY is marginally firmer, with the USD edging up against most peers after Tuesday's broad losses amid strong US equities, lower yields and constructive Middle East headlines that were later denied. Focus remains on Iran-US talks via Pakistan and Qatar, while envoy Witkoff meets Russian President Putin today with an updated Ukraine peace proposal. EUR/USD is slightly softer in a tight range near the 1.12 handle, with French unrest and the wider OAT-Bund spread in focus ahead of Moody's review on Friday; ECB's Lane, Cipollone and Lagarde are due to speak later. GBP/USD is flat around 1.3375 after Tuesday's outperformance on the surprise drop in UK unemployment to 4.7%, with UK CPI due later today. GBP/USD has dipped back under its 100 DMA (1.3366) USD/JPY is marginally higher and holding above 158.00 after soft Japanese trade data, while Finance Minister Katayama said there is no major divergence with the BoJ on inflation or policy. AUD/USD outperforms, back above 0.7000, while RBA's Hauser said overnight that the inflation outlook has deteriorated and the quarterly trimmed mean looks set to be higher than expected.