Australian shares are set to open higher on Tuesday as markets weigh ongoing tariff uncertainties ahead of the US August 1 deadline and closely monitor Federal Reserve Chairman Jerome Powell's future amid expectations of regulatory shifts following the August congressional recess.

Overnight, the S&P 500 and the Nasdaq Composite rose 0.1% and 0.4% respectively, while the Dow Jones Industrial Average fell 0.04%.

In the macroeconomy, the Reserve Bank of Australia's Meeting Minutes are due at 11:30 am Sydney time.

In corporate news, Champion Iron (ASX:CIA) has signed a definitive framework agreement with Nippon Steel and Sojitz, under which the partners will initially invest CA$245 million for a 49% stake in the newly formed Kami Iron Mine Partnership, according to a Tuesday Australian bourse filing.

New World Resources (ASX:NWC) received notice that suitor Central Asia Metals (CAML) has withdrawn its bid, following the company's Monday decision to recommend that its shareholders accept Kinterra Capital's revised takeover offer, according to a Tuesday filing with the Australian bourse.

Australia's benchmark index fell 1% or 89 points, to close at 8,668.20 on Monday.