The Australian sharemarket has opened higher with traders focusing on late gains made in the US session rather than the fact leaders there are yet to agree on avoiding the looming fiscal cliff.

At 1045 AEDT,the benchmark S&P/ASX200 index was up 22.1 points,or 0.46 per cent,at 4670.1,while the broader All Ordinaries index rose 22.5 points,or 0.48 per cent,at 4683.9.

On the ASX 24,the March share price index futures contract was up 26 points at 4654 with 5737 contracts traded.

US stocks edged lower but recovered some ground in the last hour of trade on reports leaders would meet this weekend after Senate Majority Leader Harry Reid had earlier said a compromise was unlikely before the January 1 deadline.

The White House and Congress have until New Year's Eve to reach a compromise on how to avert the"fiscal cliff",a year-end crisis that could lead to stiff tax hikes and drastic budget cuts that might halt growth.