AUD/USD aims to recapture 0.6400 as upbeat China Q3 GDP eases global slowdown fears

The AUD/USD pair remains on track to recapture the round-level resistance of 0.6400 in the early New York session. The Aussie asset discovered interest from buyers as upbeat China’s Gross Domestic Product (GDP) for the July-September quarter eased fears of a slowdown in the Asian economy.

Being a proxy for China’s economic prospects, the Australian Dollar strengthens against the US Dollar. China’s National Bureau of Statistics of China reported that the growth rate was 1.3% in the third quarter of 2023, significantly higher than expectations of 1.0% and the GDP growth of 0.5% in the April-June quarter. Annual GDP at 4.9%, outperformed expectations of 4.4% but remained lower than the former release of 6.3%.

Apart from the GDP data, Industrial Production was up at a steady pace of 4.5%. Annual Retail Sales expanded at a healthy pace of 5.5% in September vs. expectations of 4.9% and the August reading of 4.6%.

Meanwhile, the S&P500 opened on a negative note amid caution over US President Joe Biden’s visit to Israel to discuss over ground assault at the Gaza strip. Biden said that the Pentagon has shown evidence that Israel didn’t bomb the hospital in Gaza.

The US Dollar Index (DXY) consolidates around 106.35 as investors shift focus to the speech from Federal Reserve (Fed) Chair Jerome Powell, which is scheduled for Thursday. Major focus would be on the interest rate guidance as other Fed policymakers have been supporting keeping interest rates unchanged at 5.25-5.50% due to higher long-term US bond yields. The 10-year US Treasury yields rose to 4.85%.