(Australian Associated Press)

The Australian share market looks set to open higher after the ASX posted its strongest session of the year on Tuesday.

At 0705 AEST on Wednesday, the share price futures index was up six points, or 0.1 per cent, at 5,738.

The Australian market on Tuesday was buoyed by economic data showing better-than-expected retail spending figures.

The benchmark S&P/ASX200 index gained 99.3 points, or 1.75 per cent, to 5783.8 points, its strongest performance since November 10, when the market surged after the election of US President Donald Trump.

Retail spending rose 0.6 per cent in May, well ahead of market expectations, and continuing on from strong growth in April.

Markets in the the US were closed for the July 4 Independence Day public holiday, and European and Asia were weaker.

Locally, in economic news on Wednesday, the Ai Group Performance of Services Index (PSI) for month just ended is due out.

No major equities news is expected.

Meanwhile, the Australian dollar is lower after the Reserve Bank appeared not to be inclined to consider raising its interest rate, following its monthly board meeting on Tuesday.

The local currency was trading at 76.04 US cents at 0700 AEST on Wednesday, from 76.17 on Tuesday.

CURRENCY SNAPSHOT AT 0705 AEST:

* 76.04 US cents, from 76.17 US cents on Tuesday

* 86.11 Japanese yen, from 85.97 yen

* 67.03 euro cents, from 66.98 euro cents

* 58.87 British pence, from 58.79 pence

* 104.31 New Zealand cents, from 104.54 NZ cents

GOLD:

The spot price of gold in Sydney at 0705 AEST was $US1,223.10 per fine ounce, down from $US1,225.42 per fine ounce on Tuesday.

BOND SNAPSHOT AT 0706 AEST:

* CGS 4.50 per cent April 2020, 1.8479pct, from 1.8479pct on Tuesday

* CGS 4.75pct April 2027, 2.5648pct, from 2.5648pct

Sydney Futures Exchange prices:

* September 2017 10-year bond futures contract at 97.360 (implying a yield of 2.640pct), from 97.38 (2.62pct) on Tuesday

* September 2017 3-year bond futures contract at 98.040 (1.96pct), from 98.07 (1.93 pct).

(*Bond market closes taken at 1630 AEST previous local session)