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  • AUD/USD bounces off intraday low of 0.7122 to reverse the early losses.
  • Risk tone prints mildly positive signs as US VP Debate suggest further stimulus in any case, Trump played his role early in Asia.
  • China returns to trading with welcome gift from Japan, stimulus, vaccine news will be the key to watch.

AUD/USD picks up bids from the day’s trough to 0.7138 during the early Thursday’s trading. In doing so, the Aussie pair reverses the initial downside to 0.7122 even as market sentiment seesaws amid the US Vice Presidential Debate.

Read: VP debate could raise chances of a contested election and weigh on markets – Live coverage

The Democratic candidate for the Vice President’s (VP) post, Kamla Harris, recently manages to combat Republican VP Mike Pence’s debate skills. Even so, fears of the delay in the coronavirus (COVID-19) vaccine and cautious economic optimism, as conveyed by the RBNZ and the BOJ policymakers probe the bulls.

Earlier in the day, US President Donald Trump said he feels perfect now and blamed the political backlog that pushes the COVID-19 vaccine to just after the election. The Republican leader, as per the White House Chief of Staff Mark Meadows, also opened gates to consider Democratic counteroffer to his latest stimulus measures if they match the Republican stand.

On a different page, traders in China return from the Golden week holidays and get a gift from Japan as Tokyo lifts the travel ban on 12 countries including Beijing. However, the European Union’s steel tariff on China, Taiwan and Indonesia seems to probe the bulls.

Amid these plays, S&P 500 Futures print 0.35% gains to 3,418 while Australia’s ASX 200 gains further upside momentum beyond 6,100, up 1.15% intraday.

Given the lack of any major data/events on the calendar, pair traders will keep eyes on the risk catalysts for fresh impulse ahead of the weekly US Jobless Claims. This results in a swifter response to stimulus and virus headlines.

Technical analysis

Only if the buyers manage to break 50-day SMA, currently near 0.7205, AUD/USD prices can avoid revisiting the late-September lows close to the 0.7000 threshold.