Australian shares are poised to rise, in line with gains in New York, after US May CPI data showed inflation continuing to cool, lifting expectations that the Federal Reserve will pivot to rate cuts as early as September.

US markets pared some of their gains after Fed chairman Jerome Powell said policymakers want to see more progress on inflation ahead of a decision to lower rates. At the closing bell, the S&P 500 rose 0.9 per cent to 5421.03, another closing high. It was the first time the benchmark index topped 5400 points. The current bull market has now reached 20 months.