The chance of a budget surplus may have fed into improved optimism about the future health of the Australian economy.
Consumer confidence as measured by ANZ and Roy Morgan every week remains downcast, with the overall index sinking to its lowest point since the early phase of the pandemic.
But participants were feeling more upbeat about "future economic conditions", with the subindex lifting 2.6 points.
ANZ senior economist Adelaide Timbrell said they may have been influenced by the announcement of a federal budget surplus last week.
However households are clearly feeling financially stretched due to higher interest rates and still-elevated inflation, with a 5.4-point dip in "current financial conditions" and a 4.6-point fall in "future financial conditions" dragging the overall index down.
The gauge fell 1.8 points to 75.9, which was the 11th week in a row of a below-80 reading.
"Among the housing cohorts, confidence fell for those renting (-4.1) and those paying off their homes (-2.2), while it rose for those who own their homes outright (+2.0)," Ms Timbrell wrote in the report.
Also on Tuesday, the Reserve Bank will release the minutes from the May board meeting where the board opted to lift interest rates by another 25 basis points.
The increase threw many experts who expected the RBA board to keep the cash rate on hold following a pause in April and weakening inflation data for the March quarter.
The increase followed 10 hikes in a row starting from May last year as the central bank aims to tighten the screws on red-hot inflation.
Governor Philip Lowe has already spoken publicly since the May decision where he stressed the importance of returning inflation to target reasonably quickly.
He also said the board responded to signs of a tight labour market, persistent service inflation and changing asset prices by pulling the trigger on another hike.
Further rate increases will be highly data-dependent, with the bank set to digest new wage and jobs data this week.
© AAP 2023