The Australian share market is holding on to gains, after losing some ground with all four major banks slipping into the red.

Around Friday noon AEST, the benchmark S&P/ASX200 index was 8.6 points or 0.2 per cent higher at 4541.3. The broader All Ordinaries index, meanwhile, firmed up 17.3 points or 0.4 per cent to 4580.3.

The local stockmarket opened about 0.57 per cent higher, taking its cues from yet another positive finish on Wall Street, but pared some of the early gains during the morning.

The major retail banks all were down at midday.

ANZ lost 18 cents at $23.25, while Commonwealth Bank shed 35 cents at $51.57. National Australia Bank slumped to $23.96 after losing 15 cents. Westpac had dropped 17 cents at $22.48.

Meanwhile, the big two miners were stronger, with BHP Billiton adding up 20 cents at $38.52, and Rio Tinto increasing 44 cents to $73.56.

The Australian share market was cooling after a few days of impressive performances both domestically and offshore, according to Macquarie Private Wealth division director Lucinda Chan.

Local investors were cautious ahead of the US employment figures, scheduled for release overnight, she said.

''It's a little bit soft because of the unemployment data tonight although I don't think anybody is expecting any big surprises.''

"We've had a couple of good rises so I think we're just taking a breather," said F.W. Holst research manager David Spry. "I think we're likely to ebb and flow today."

Local investors are unlikely to make bold moves until the release of the US non-farm payrolls data due later today.