The Australian dollar has risen more than half a US cent as the greenback fell on disappointing US retail sales numbers, dousing market expectations of an imminent US rate rise.

At 0700 AEST on Friday, the local unit was trading at 75.18 US cents, up from 74.56 cents on Thursday.

Westpac senior currency strategist Sean Callow said the Aussie benefited from a fall in the US dollar following the release of “softer-than-expected” US retail sales figures overnight.

The disappointing data has reduced the expectations that the Federal Reserve will raise its key interest rate next week or even this year, he said.

“The (US) economy is seen as slowing somewhat and that undermined the US dollar,” Callow said.

The Aussie also benefited from a rise on Wall Street, he said.

AAP

Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.