Australian consumer confidence rose last week, with households poised for further support ahead of the expected interest rate cut, according to a report from ANZ Research and Roy Morgan Research published Tuesday.

The ANZ-Roy Morgan Consumer Confidence Index advanced to 88.8 in the week of May 12 to 18 from 88.3 in the prior week.

Consumers' assessment of their financial situation compared with a year ago improved, while their year-ahead outlook weakened.

Household economic confidence over the next 12 months also strengthened, bringing the four-week moving average of the sub-index to its highest level since early May 2022, just before the Reserve Bank of Australia's (RBA) hiking cycle at the time, the report said.

The survey comes ahead of the expected 25-basis-point cut from the RBA later in the day.

"Rate cuts flowing through to household disposable incomes should support upward momentum in ANZ-Roy Morgan Consumer Confidence this year but may be softened by global uncertainty," said ANZ economist Sophia Angala.

Consumers' inflation expectations were steady at 4.5%.