The Australian share market is tipped to build on its fresh 11-and-a-half year high at the open after a temporary US licensing reprieve for Chinese telco Huawei gave Wall Street an overnight boost.

The SPI200 futures contract was up 13 points, or 0.2 per cent, at 6,580.0 at 0800 AEST, suggesting another rise for the S&P/ASX200 after the benchmark hit its highest mark since November 2007 during the previous session.

The banking sector was the biggest gainer on Tuesday after the Reserve Bank indicated it would likely cut interest rates, possibly as soon as June.

APRA also proposed loosening the rules around home loans to allow people to borrow more.

The tech-heavy NASDAQ was the best performing Wall Street index overnight following a move by the US to grant Huawei a license to buy US goods until August 19.

Shares of Huawei suppliers such as Intel Corp, Qualcomm Inc, Xilinx Inc and Broadcom Inc rose between 1.0 and 4.6 per cent, with tech shares rising 1.2 as a sector to add the most gains to the S&P 500.

The Aussie dollar is buying 68.84 US cents from 68.79 US cents on Tuesday.