WTI holds steady above $78.00 mark as traders keenly await US PCE data

• A combination of factors continues to act as a tailwind for Crude Oil prices on Friday.
• Worries about sluggish demand in China keep a lid on any meaningful appreciation.
• Traders also seem reluctant and look to the US PCE Price Index for a fresh impetus.

West Texas Intermediate (WTI) US crude Oil prices edge higher during the Asian session on Friday and look to build on the overnight bounce from the $75.75 area, or the lowest level since June 10. The commodity currently trades just above the $78.00 mark, up over 0.10% for the day, though remains on track to register the third straight week of losses.

The stronger-than-expected US Gross Domestic Product (GDP) print released on Thursday raised hopes for increasing demand in the world's largest fuel consumer and turned out to be a key factor acting as a tailwind for Crude Oil prices. Furthermore, bets that the Federal Reserve (Fed) will begin its policy-easing cycle in September keep the US Dollar (USD) depressed below a two-week high touched on Wednesday and lend additional support to the commodity.

That said, concerns over sluggish growth in China – the world's top Oil importer – hold back traders from placing aggressive bullish bets around the black liquid and should cap any meaningful appreciating move. The worries were fueled by the GDP data released last week, which showed the Chinese economy grew less than expected in the second quarter. Hence, it will be prudent to wait for strong follow-through buying before positioning for any further gains.

Market participants might also prefer to wait on the sidelines ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index, due later during the early North American session. The crucial inflation data should influence the Fed's rate-cut path, which will drive the USD demand and determine the next leg of a directional move for Crude Oil prices, which, so far, has been showing some resilience below the key 200-day Simple Moving Average (SMA).