Australian shares are set to open higher Tuesday on the back of Wall Street's gains despite looming tariffs, while investors await the central bank's rate decision.

The Reserve Bank of Australia will release its monetary policy statement at 2:30 pm Sydney time. The board is widely expected to keep the key rates unchanged following a cut in February.

Retail sales data for February are also slated for release at 11:30 am Sydney time.

In other macroeconomic news, the headline seasonally adjusted S&P Global Manufacturing Purchasing Manager's Index rose to 52.1 in March from 50.4 in February. This marked the indicator's highest reading since October 2022.

Wall Street rose overnight even as investors braced for fresh tariffs on Wednesday. The Dow Jones Industrial Average gained 1%, and the S&P 500 rose 0.6%, while the Nasdaq Composite was flat.

In corporate news, AVJennings (ASX:AVJ) entered into a scheme implementation deed to sell all of its ordinary shares to Proprium Capital Partners for AU$0.655 per share, according to a Tuesday filing with the Australian bourse.

Sigma Healthcare (ASX:SIG) is considering raising capital through a convertible bond issue, with analysts speculating a raise of up to AU$1 billion, according to a Monday report by the Australian, citing unnamed sources.

Australia's benchmark index fell 1.7%, or 138.60 points, to close at 7,843.40 on Monday.