AUD/USD in narrow range ahead of key US data

The AUD/USD pair is trading within a narrow range of 0.6484-0.6500 as investors are awaiting the release of the US Gross Domestic Product (GDP) data for fresh stimulus and clues. The asset is facing a time correction after refreshing its three-week high at 0.6511 amid an improvement in the risk appetite of investors.

The risk profile remained upbeat on Wednesday despite a halt in a three-day buying spree in the S&P500. Weaker guidance on sales growth by tech-giant Microsoft resulted in a correction in the 500-stock basket, however, the upside bias is still solid amid higher targets. In the opinion of economists at Morgan Stanley, the rally in S&P500 could be extended well into the 4000/4150 area.

The US dollar index (DXY) is hovering around 109.70 after a sheer fall as investors ditched the risk-aversion theme ahead of the US Gross Domestic Product (GDP). As per the preliminary estimates, the US economy has expanded at a growth rate of 2.4% in the third quarter of CY2022 against the de-growth of 0.6% recorded earlier.