Australian shares are poised to fall on Wednesday after New York Federal Reserve President John Williams said the US Federal Reserve has time to assess incoming economic data before deciding on further rate hikes, tempering market expectations for an October increase while signaling one more hike may be appropriate later this year.

Oil prices fell 2.5% as signs of recovering Middle East exports eased supply concerns, although crude remained on track for monthly gains.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.2%, 0.1%, and 0.3%, respectively.

In the macroeconomy, the Australia's consumer price index, building approvals, and engineering construction activity reports are due at 11:30 am Sydney time.

In corporate news, DroneShield (ASX:DRO) said its US subsidiary secured a three-year Joint Interagency Task Force 401 domestic shield indefinite delivery, indefinite quantity contract with a ceiling of $500 million.

Amplitude Energy (ASX:AEL) took a final investment decision to proceed with the East Coast Supply Project's development phase, with point-forward costs expected to be AU$190 million to AU$210 million for the company's net 50% share over fiscal 2027 and fiscal 2028.

Australia's benchmark index rose 0.3%, or 29.6 points, to close at 8,709.30 on Tuesday.