The Australian market is set to open higher on the back of solid gains on Wall Street after some strong US employment data.

US stocks and the greenback rallied overnight after a report showed that the number of Americans applying for unemployment benefits last week had its biggest fall since November 2012.

On Christmas Eve, the March share price index futures contract finished the session up 47 points at 5,316.

In Australia, the market on Tuesday closed higher on the back of strong consumer spending figures from the US.

The benchmark S&P/ASX200 index on Tuesday rose 35.3 points to 5,327.2 points.

The broader All Ordinaries index was up 33.9 points to 5,325.4 points.

Locally, no major economic or equities news is expected on Friday.