Australian shares rose on Tuesday's close, after the Reserve Bank of Australia lowered the cash rate by 25 basis points to 3.6%.

The S&P/ASX 200 Index rose 0.4% or 36 points to close at 8,880.8, reaching a record high.

The monetary policy board said it will watch data and risks to decide on further rate cuts, while economists expect two more cuts by March 2026, Bloomberg reported

"We think it will have to go further, and see 100 basis points of rate cuts over the next 12 months," Economist James McIntyre said.

On the domestic front, the ANZ-Roy Morgan Australian consumer confidence fell 1.3 points to 89.3 points in the week of Aug. 4 to 10, but the four-week moving average inched up 0.7 points to 88.2 points, its highest in over three years.

The NAB business confidence index ticked up 2 points to 7 index points in July, with confidence strongest in construction, as well as the service sectors, and weakest in retail and wholesale, in trend terms, according to a survey by the National Australia Bank (ASX:NAB).

In company news, Star Entertainment Group (ASX:SGR) entered binding agreements to sell its stakes in Destination Brisbane Consortium (DBC), Destination Gold Coast Consortium (DGCC), and other Brisbane assets to joint venture partners Chow Tai Fook Enterprises and Far East Consortium. Shares of the company rose 24% at market close.

Life360 (ASX:360) said Chief Operating Officer Lauren Antonoff has been promoted to chief executive officer. Shares of the company rose 8% at market close and earlier hit a 52-week high.

Lastly, SGH (ASX:SGH) reported fiscal year 2025 underlying earnings of AU$2.26 per share, unchanged from a year earlier. Shares of the company fell 9% at market close.