Australian dollar hits highest level in three weeks

The greenback's losses and strong services sector data have rallied the Australian dollar to its highest level in three weeks.

At the Asian open on Friday, the unit was trading at 73.35 U.S. cents, up from the 73.09 U.S. cent close on Thursday. The unit hit an overnight high of 73.56 U.S. cents, its highest level in three weeks.

"The U.S. dollar has been sold aggressively overnight, falling 1.2 percent and breaking the bottom of its recent consolidation range," IG chief market strategist Chris Weston said.

"This has largely been driven by fairly strong buying in the U.S. fixed income market with five and 10-year treasury yields falling six basis points apiece."

The Australian dollar has been climbing over the past 36 hours, expanding its range beyond the November 21 pivot lower to recoup 50 percent of its losses seen during the December fall.

The Aussie's strength was also aided by both local and Chinese service sector data released on Thursday, FXStreet analyst Valeria Bednarik told local media.

The unit is "poised to extend its advance, although much of the upcoming direction will depend on the result of the U.S. employment report to be released early Friday," Bednarik said.

At 1007 local time (AEDT), the Australian dollar was trading at 73.40 U.S. cents. Endit