The Australian share market closed marginally higher after modest across the board gains ahead of retail sales and consumer confidence figures from the US on Friday night. The benchmark S&P/ASX200 index was up 3.9 points, or 0.08 per cent, at 4,818.1 points, while the broader All Ordinaries index added six points, or 0.12 per cent, to 4,831.5 points. BHP Billiton has been in the red all day due to the fact that we didn't see, once again, too much conviction coming through from the (London) metal exchange, but Rio Tinto certainly rebounded from those losses we saw during Wednesday's session. BHP Billiton was down 16 cents to $42.85 and Rio Tinto was up 41 cents to $75.96. The major banks were mostly stronger. National Australia Bank was 15 cents higher at $26.90, Commonwealth Bank rose eight cents to $55.88 and ANZ was 20 cents higher at $24.26, but Westpac was down 10 cents to $26.90. Lead, zinc and silver miner CBH Resources was a strong performer after a better than expected takeover offer from Nyrstar NV of Belgium. Shares in CBH  rose four cents, or 28.57 per cent, to 18 cents after emerging from a trading halt later in the day.

Making headlines on Friday, Insurance Australia Group said natural peril costs will exceed its budgeted allowance for the second half after recent severe weather in Victoria. IAG inched one cent higher to $3.96. Iron ore producer Fortescue Metals Group increased the production target at its planned third mine, Solomon in Western Australia's Pilbara region, and put an $A9.7 billion price tag on a two-stage operation. Shares in Fortescue were two cents higher at $4.94. Property developer Lend Lease Group said a US class action against the company filed by workers employed on the World Trade Centre site in New York City has been settled. Lend Lease shares were down six cents to $8.60. Key gold stocks were stronger. Lihir Gold was 11 cents higher at $3.01 and Newcrest appreciated 31 cents to $34.21. The spot price of gold $1,112.30 per fine ounce, up $3.33 on Thursday's closing price of $1,108.97 per fine ounce. Most energy stocks were higher despite oil prices falling slightly overnight. Woodside was up 14 cents to $45.41 and Santos gained 19 cents to $14.06 but Oil Search went backwards by five cents to $5.66. Among key retailers, Coles owner Wesfarmers was down 31 cents to $31.98, while Woolworths put on 14 cents to $28.50. The top-traded stock by volume was skin patch developer OBJ Ltd, with 102.5 million shares worth $6.19 million changing hands. OBJ's shares rose 0.5 cent, or 8.93 per cent, to 6.1 cents. Preliminary market turnover was 2.15 billion shares worth $4.09 billion, with 561 stocks up, 469 down and 395 unchanged.

The Australian dollar inched higher in Asia trade Friday, ending a strong week for the currency that was helped by underlying strength in the February jobs report and gains in metals prices. Bond prices were little changed, though both ends of the curve were crippled this week on increasing expectations the Reserve Bank of Australia may have to be more aggressive with monetary tightening. After a strong week for the Australian dollar that saw the currency hit its highest point against the U.S. dollar since late January, trading was relatively quiet Friday. Earlier in the week, strength in metals prices as well as Thursday's jobs report fueled gains. While the total job additions in February was a disappointment, economists highlighted an increase in full-time positions and an increase in hours worked. Looking ahead to next week, trading could get loud for one of the world's most followed crosses --U.S. Dollar against Japanese yen--which would in turn drive direction for the Australian dollar. Speculation is growing in financial markets that the Bank of Japan may discuss additional monetary easing at its board meeting starting Tuesday. The Australian dollar was quoted at $0.9162, up from $0.9146 late Thursday. Against the Japanese yen, the Australian dollar was at 83.04, up from 82.665.