The Australian dollar is marginally higher against the greenback on Friday, with a lift in investor sentiment.

At 07:06 (AEST), the local currency was trading at 75.28 U.S. cents, up slightly from 75.20 U.S. cents on Thursday.

"The Australian dollar benefited from improving risk appetite," BK Asset Management, managing director of FX Strategy, Kath Lien said in a note to investors.

At 09:35 (AEST), the Australian dollar is buying 75.23 U.S. cents.