Australian shares are poised to rise on Wednesday as investor sentiment improves following the US Senate's passage of a $3.3 trillion tax and spending cut bill.

Optimism was further boosted after US Federal Reserve Chair Jerome Powell signaled openness to a July rate cut while noting decisions will depend on incoming economic data.

Overnight, the S&P 500 and the Nasdaq Composite fell 0.1% and 0.8%, respectively, while the Dow Jones Industrial Average gained 0.9%.

In macroeconomy, the building approvals and retail trade reports are due at 11:30 am Sydney time.

In corporate news, Domino's Pizza Enterprises (ASX:DMP) is in focus as a landmark Fair Work Commission ruling against McDonald's paves the way for unions to force multi-employer wage negotiations across major fast-food franchises.

Macquarie Group's (ASX:MQG) asset management arm-led consortium committed an additional 655 million pounds sterling equity to Southern Water to back its record five-year growth plan and ongoing turnaround amid regulatory reforms, according to a Tuesday statement by the company.

Australia's benchmark index was little changed on Tuesday to close at 8,541.10.