At 0700 AEST on Tuesday, the local unit was trading at 75.97 US cents, up from 75.50 cents on Monday.
The Aussie surged to 76.30 US cents overnight as the greenback weakened further, Westpac strategist Imre Speizer said.
“The US dollar extended its multi-month decline and underperformed most developed currencies,” he said.
Speizer said the price of crude oil also rose to a four-month high, while iron ore surged nearly five per cent.
He tipped the Aussie to power higher on Tuesday, initially chasing 76.35 US cents and then targeting 77 US cents.
“Australia has NAB business confidence today – an occasional market mover,” Speizer said.