"We're really pleased with that, that's a good sign. We won't bring him back and say 'come into training lad and do everything' just progress him through. I'm really positive about him playing."
Folau, who also missed the Scotland match with an ankle injury, is also set to return while Cheika is receiving good news on loosehead prop Sio who was forced from the field against Scotland after injuring an elbow.
The 24-year-old underwent scans on Monday and the early diagnosis is encouraging, which could be good news for the Wallabies knowing that Argentina will really test them in the scrum.
"Scott Sio is moving along OK. We'll need a couple of days to check him out but we're really happy with the way he's come up today," Cheika said. "The scan showed it wasn't as bad as it could have been, so he's moving along nicely."
The Wallabies are expected to announce their team on Friday.