The Australian share market is headed for a rebound after overnight gains on US markets.

The SPI200 futures contract was up 69 points, or 1.09 per cent, at 6,413 at 0800 AEDT on Tuesday, suggesting a rise when the local market opens.

Stocks closed slightly lower on Monday after a dramatic turnaround from huge early losses amid hopes the Reserve Bank will again cut rates on Tuesday.

US and European stocks rebounded overnight on hopes of global central bank stimulus action.

The Aussie dollar was buying 65.26 US cents at 0800 AEDT on Tuesday, down from 65.27 US cents on Monday as the stock market closed.