The Australian dollar hit a four-month high, rallying on positive comments from the European Central Bank on Thursday night.
At 1700 AEDT on Friday, the currency was trading at 105.82 US cents, up from 105.49 US cents on Thursday.
On Friday morning, it rose to 106.00 US cents, its highest level since mid-September, after markets reacted enthusiastically to a statement from ECB President Mario Draghi.
Following the ECB's latest board meeting, Mr Draghi said recent signs suggested the situation in Europe had broadly stabilised and financial market confidence had improved significantly.
ANZ Foreign exchange strategist Andrew Salter said the ECB statement had added strength to the Australian dollar by weakening demand for safe haven currencies like the US dollar.
"That really was the catalyst for sustained US dollar weakness overnight," he said.
"Really today's session in Asia has been about consolidation of that pretty profound move."
Mr Salter the the Australia dollar was also still benefiting from better-than-expected Chinese trade data, released on Thursday.
The Australian dollar has climbed more than one US cent since the start of the week.
Mr Salter expected the currency to move towards 107 US cents over the next few weeks, depending on the strength of local and international economic data to be released in that time.