At 0735 AEDT on Tuesday, the local unit was trading at 74.73 US cents, up from 74.46 cents on Monday.
Westpac senior market strategist Imre Speizer said the US dollar’s pullback accelerated overnight and has scope to run further.
The Aussie “should test” 75.00 US cents over the next day, he said in a research note.
The RBA is widely expected to keep interest rates on hold on Tuesday at its last meeting for 2016.
Global markets took the Italian referendum ‘no’ vote on Sunday in their stride and adopted a mainly risk-seeking posture overnight, Speizer said.
“US and European equities are higher, as are commodities, and the safe-haven US dollar is weaker,” he said.