The Australian share market has clocked its highest close in three months after eight straight sessions of gains.

The S&P/ASX200 retreated after an early spike but finished 38.2 points, or 0.46 per cent, higher at 8,335.7.

The broader All Ordinaries rose 41.6 points, or 0.49 per cent, to 8,571.4.

The top-200 is within three per cent of its all-time peak after local shares rallied on this week’s US-China tariff de-escalation and a likely Reserve Bank interest rate cut next week.

The Commonwealth Bank also pipped a new intraday all-time high of $172.92, but ran into heavy selling to trade back below $170.

The Australian dollar is buying 64.32 US cents, down slightly from 64.39 on Thursday afternoon after a surprise slip in US producer prices weighed on the greenback.