The Australian share market has closed higher, with investor sentiment strong despite a trade deficit blow-out for May.

At the close on Wednesday, the benchmark S&P/ASX200 index was 79.5 points, or 1.48 per cent, higher at 5,455.4, while the broader All Ordinaries index was up 75.2 points, or 1.4 per cent, at 5,441.7.

On the ASX 24, the September share price index futures contract was 74 points higher at 5,414, with 28,491 contracts traded.