Australian shares are set to open lower on Thursday as US Federal Reserve officials unanimously held interest rates steady but revealed growing uncertainty over future moves, with projections showing a split on the timing of rate cuts amid concerns over tariffs' impact on the economy.

Iron ore prices fell for a fifth consecutive day, hitting their lowest levels since April as weakening demand in China's steel market pressures the commodity.

Overnight, the S&P 500 and the Dow Jones Industrial Average both fell 1.9 and 44.1 points, respectively, while the Nasdaq Composite rose 25.2 points.

In the macroeconomy, investors are eyeing the release of Australia's labor force report due at 11:30 am Sydney time.

In corporate news, KMD Brands (ASX:KMD, NZE:KMD) expects US tariffs to impact its fiscal 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) by about NZ$1 million, according to a Thursday filing with the Australian and New Zealand bourses.

Manawa Energy (NZE:MNW) Chief Executive Clayton Delmarter and Chief Financial Officer Phil Wiltshire will step down after implementing the scheme of arrangement in which Contact Energy (ASX:CEN, NZE:CEN) will acquire the company, according to a Thursday New Zealand bourse filing.

Australia's benchmark index fell 0.1% or 10.1 points, to close at 8,531.20 on Wednesday.