• AUD/USD treads water after printing the biggest daily gains in over a week.
• Firmer US data, challenges to sentiment probe Aussie buyers ahead of US Q3 GDP.
• Downbeat Aussie numbers failed to tame prices amid risk-positive headlines surrounding China.
• Consolidation of BOJ-led moves added strength to the Aussie pair’s recovery.

AUD/USD seesaws around the 0.6700 round figure, following a nice rebound from the weekly low, as well as posting the biggest daily gains in eight days. Even so, the Aussie buyers take a breather during early Thursday as traders await the key United States Gross Domestic Product (GDP) for the third quarter (Q3).

The Aussie pair’s latest gains could be linked to the upbeat headlines from China as Foreign Ministers of Canberra and Beijing meet after a long time, suggesting a settlement over the thorny issues. As the meeting went on, China President Xi Jinping crossed wires while saying, “Healthy, stable development of China-Australia ties conducive to promoting, peace, stability and prosperity in Asia-Pacific.” The policymaker also added that (they) will work with Australia to promote China-Australia comprehensive strategic partnership. Additionally, headlines suggesting more stimulus from China also underpin the AUD/USD rebound due to the Aussie-China trade links.

Alternatively, downbeat prints of Australia’s Australia’s Westpac Leading Index, to -0.1% in December compared to -0.05% prior readings, should have probed the AUD/USD bulls. On the same line is the eight-month high US Conference Board’s (CB) Consumer Confidence, which marked the latest print of 108.3 for December, compared to the market forecasts of 101.0 and the revised prior readings of 101.40.

It’s worth noting that Ukrainian President Volodymyr Zelensky’s US visit and Russian President Vladimir Putin’s readiness to increase the country’s military potential seemed to have probed the AUD/USD bulls of late.

Above all, the consolidation of the Bank of Japan (BOJ) led shock seemed to have helped the AUD/USD bulls against all the odds.

Amid these plays, Wall Street closed positive and the US Treasury yields retreated. Even so, the US Dollar Index (DXY) snapped a two-day downtrend.

Looking forward, a light calendar in Asia may restrict AUD/USD moves ahead of the European and North American trading sessions.

Today’s scheduled United States Gross Domestic Product (GDP) for the third quarter (Q3) and Core Personal Consumption Expenditure (PCE) details for Q3 will be crucial for immediate directions. Forecasts suggest that the US GDP is expected to confirm 2.9% Annualized growth in Q3 while the Core PCE will also meet the initial forecasts of 4.6% QoQ during the stated period. As a result, the softer US numbers may allow the AUD/USD buyers to keep the reins.

Technical analysis

Repeated bounces off the 100-DMA, currently around 0.6660, keep AUD/USD buyers hopeful.