After enduring a corrective period in recent days, the Australian dollar has sprung back to life overnight coinciding with a decidedly positive European and U.S session. The local unit found its feet after yesterday's employment data and the momentum was kept alive throughout European and U.S trade after market participants were encouraged by easing Italian and Spanish bond yields, solid Chinese new loan data and comment from key Fed officials.

In an effort to guide market expectation, New York Fed President William Dudley indicated the need for accommodative policy despite recent economic improvements. In short, we're seeing a 'don't count your chickens before they hatch' type mantra from Fed members which is an encouraging sign for the stimulus-dependant U.S economy. Mixed economic feedback from the United States failed to derail a generally supportive environment with sentiment barometers such as the S&P500 and DOW rising 1.38 and 1.41 percent respectively.

The key directive locally today will come from Australia's largest trading partner with Chinese GDP, retail sales, industrial production and fixed asset investment on the docket. Growth in China is expected to have further moderated in the first quarter to a yearly pace of 8.4 percent from a previous 8.9 percent. China-contingent currencies will be the first the react with a deviation from estimates likely induce a similar short-term response on the Australian dollar. Market participants may be well-informed of China's intension to engineer growth sustainability, however fears of a hard-landing scenario remain a dominate force behind global markets - should today's number sink convincingly below estimates it will serve reinforce the view of those expecting a pronounced deterioration. Rumors suggesting today's GDP will outpace expectations are circulating which may serve to exacerbate downside should the official print fail to inspire.  At the time of writing the Aussie dollar is buying 104.35 US cents.