Westpac Bank released its consumer confidence index for Australia on late Tuesday evening. The index climbed 4.2% in February, beating expectations for a 1.0% fall, after a 3.5% drop in January.

The index was mainly driven by a rise in the index tracking views on 'family finances vs a year ago', which jumped by 11.3% in February.

"The Reserve Bank Board next meets on March 1. Following the recent turmoil, markets are convinced that the Reserve Bank will be cutting rates by May, if not earlier," Westpac Chief Economist Bill Evans said.

"Today's report highlights that one of the Bank's most significant concerns of whether international developments will weigh on domestic demand will need more time to resolve," he added.