AUD/USD refreshes session highs on broad-based US dollar weakness

• Broad-based US dollar weakness is powering gains in AUD/USD. 
• Fed's unlimited easing is aimed at keeping credit markets from freezing. 
• The RBA is also injecting liquidity to stabilize markets.

The upside in the Aussie dollar is gathering pace and pushing the AUD/USD pair higher. The pair is currently trading at session highs near 0.6940, representing a 2% gain on the day. 

Dollar offered on Fed's unlimited QE

Asian desks are offering the greenback, possibly in response to the Federal Reserve's commitment to buy treasuries and mortgage-backed securities in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions. 

The dollar index, which tracks the value of the greenback against majors, is currently trading at 101.64, representing a 0.5% drop on the day. 

RBA pumps liquidity

The Aussie dollar seems to be benefitting from the Reserve Bank of Australia's (RBA) latest efforts to ease stress in the financial markets. The central bank, on Tuesday, injected A$6.9 billion into the financial system and announced it would buy A$4 billion in government bonds, having made purchases worth A$4 billion in local government bonds on Monday. 

AUD/USD could continue to trade on the offensive as the Fed's unlimited easing is likely to bring stability in credit markets, leading to a drop in the dollar funding costs. The US inflation expectations are also on the rise and pushing gold, one of Australia's top exports, higher. 

Technical levels