Australian shares are poised to fall on Thursday, tracking a slide on Wall Street after Federal Reserve Chair Jerome Powell signaled interest rates would remain elevated amid persistent economic uncertainty, reducing expectations of a rate cut in September.

Sentiment is also likely to be weighed down by a sharp 17% drop in copper prices following US President Donald Trump's surprise tariffs on copper products, reigniting trade tensions and pressuring commodity markets.

Overnight, the S&P 500 and the Dow Jones Industrial Average fell 0.1% and 0.4%, respectively, while the Nasdaq Composite gained 0.2%.

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

In corporate news, Rio Tinto (ASX:RIO) is under the spotlight after releasing its earnings late Wednesday, with investors assessing the impact of volatile commodity prices and trade tensions.

Flight Centre Travel Group (ASX:FLT) has downgraded its full-year profit guidance, expecting underlying profit before tax of AU$285 million to AU$295 million for fiscal year 2025, below its previous forecast of AU$300 million to AU$335 million, citing challenges in Asia, geopolitical tensions, and a slowdown in US leisure bookings, according to a Thursday Australian bourse filing.

Australia's benchmark index rose 0.6%, or 51.8 points, to close at 8,756.40 on Wednesday.