The Australian share market has closed higher in the first session after the Christmas break, helped along by a commodity price surge and fresh records on Wall Street overnight.

The benchmark S&P/ASX200 index closed 27.5 points, or 0.4 per cent, higher at 6,821.7 points on Friday – the best session in seven – while the broader All Ordinaries was up 29.9 points, or 0.43 per cent, to 6,936.3 points.

The Aussie dollar was buying 69.53 US cents from 69.16 US cents on Tuesday, and earlier touched a five-month high of 69.56 US cents.