The Australian share market is expected to rise in early trade after US indices climbed on a record jump in retail sales and the prospect of more economic stimulus.

The Australian SPI 200 futures contract was higher by 29 points, or 0.49 per cent, to 5,974.0 at 0800 AEST on Wednesday.

Those figures follow a good day on Wall Street, where all three major US stock indices posted their third consecutive daily gains.

Commerce Department data showed US retail sales jumped by a record 17.7 per cent in May, blowing past the 8.0 per cent increase analysts expected.

Investor risk appetite was given a further boost by the Trump administration’s anticipated $US1 trillion ($A1.4 trillion) infrastructure package aimed at jump-starting the economy.

There was also hope for overcoming the COVID-19 pandemic. A UK-led drug trial showed low doses of a generic steroid drug called dexamethasone reduced COVID-19 death rates among the most severe cases.

An outbreak in Beijing this week of 100 cases of the virus and a rise in infections in much of the US have made investors worry the effects of the pandemic are far from over.

The Australian dollar was buying 68.82 US cents at 0800 AEST, lower from 69.41 US cents at the close of trade on Tuesday.