The Australian dollar has held ground just above its Wednesday close but remains in a tight range against the greenback ahead of the release of local retail trade.

At 0700 AEST on Thursday, the local unit was trading at 75.88 US cents, up slightly from 75.85 on Wednesday.

The US dollar gained against most currencies in overnight trade off the back of positive employment data but analysts remain focused on the Aussie’s potential to again rise above 76 US cents.

On Thursday the release of June retail sales figures is expected to show a marginal increase in shopper activity.

Westpac currency strategist Imre Speizer said the Aussie still has momentum towards 76 US cents but the retail sales figures are a risk factor.

Lower interest rates and a lift in sentiment should contribute to a marginal improvement, although a significant spending lift seems to have largely missed retailers of late, he said.

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