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  • AUD/USD caught some aggressive bids and rallied nearly 300 pips on Friday.
  • RBA’s bond purchase program, some USD profit-taking remained supportive.
  • A modest recovery in the global risk sentiment provided an additional boost.

The AUD/USD pair extended its goodish intraday positive move and climbed to fresh session tops, around mid-0.5900s in the last hour.

Following an early dip to the 0.5665 region, the pair caught some fresh bids and built on the previous day’s solid bounce from the vicinity of the 0.5500 psychological mark, or over 17-year lows.

The pair has now rallied nearly 300 pips from the early Asian session swing lows and the momentum was primarily sponsored by some aggressive US dollar long-unwinding trade on Friday.

In an effort to calm investors’ nerves and concerns over tightening liquidity conditions, the Reserve Bank of Australian announced to buy A$5 billion of government bonds and extended some support.

This comes on the back of the recent moves by central banks across the world and boosted investors’ confidence, which turned out to be a key factor that prompted some USD profit-taking.

Adding to this, a modest recovery in the global risk sentiment provided some additional boost to perceived riskier currencies, including the aussie, and remained supportive of the pair’s strong bid tone.

It, however, remains to be seen if the pair is able to capitalize on the momentum or meets with some fresh supply at higher levels amid fears over the economic fallout from the coronavirus pandemic.

Technical levels to watch