Cyclone intensifies off coast, set to become 'severe'

Flood-hit North Queensland is bracing for more wild weather as a cyclone forms off the coast. (HANDOUT/ERGON ENERGY)

Powerful waves are set to impact Australia's east coast, with a tropical cyclone expected to become "severe" in the coming days.

But it remains unclear whether Cyclone Alfred will cross the Queensland coast, ensuring some anxious moments for a flood-hit region.