The Australian dollar has risen on the back of strong local and Chinese service sector data.

The local currency was trading at 73.34 US cents at 0630 AEDT on Friday, up from 73.09 US cents on Thursday.

FXStreet analyst Valeria Bednarik said the Aussie even rose to 73.56 cents overnight, its highest level in three weeks.

She said data which showed Chinese service sector activity hit its highest level in 17 months and local data which showed Australian service sector activity neared a decade high boosted the local currency.

“The pair is poised to extend its advance, although much of the upcoming direction will depend on the result of the US employment report to be released early Friday,” Bednarik added.

Meanwhile, the Australian share market is set to open higher, despite falls on Wall Street overnight.

At 0700 AEDT on Friday, the local SPI 200 futures contract was up seven points at 5,723 points.

The main local economic data due Friday is Australia’s official international trade figures for November, with the market forecasting the trade deficit to narrow to $500 million, from $1.5 billion.

On Thursday, The Australian share market closed higher for a third straight session in 2017, boosted by strength among energy stocks after a lift in the price of oil.

The benchmark S&P/ASX200 was up 16.9 points, or 0.29 per cent, at 5,753.3 points, while the broader All Ordinaries index was also up 16.9 points, or 0.29 per cent, at 5,805.1 points.

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