The Australian dollar has extended gains made after the unemployment rate stayed steady at 5.8 per cent in May.

At 0705 AEST on Friday, the local unit was trading at 94.26 US cents, up from 93.94 cents on Thursday.

And the share market is set for further falls after another negative session on Wall Street, caused by escalating violence in Iraq that pushed US oil prices to nine month highs.

At 0700 AEST on Friday, the March share price index futures contract was 30 points lower at 5,401.