AUD/USD in focus as Australian household spending surges 1.6% m/m

AUD/USD is drawing attention as Australian March household spending data came in at +1.6% month-over-month, a significant acceleration from the prior reading of +0.3%. The strong consumer spending figure arrives ahead of a critical week for the Australian dollar, with the Reserve Bank of Australia set to deliver what markets expect to be a third consecutive rate hike, driven in part by an inflation surge linked to the Strait of Hormuz closure disrupting global supply chains. Adding complexity, reports indicate the RBA board was split at its May meeting, suggesting internal debate over the appropriate policy trajectory. Governor Bullock is scheduled to speak approximately one hour after the data release, with traders closely watching for forward guidance. The robust spending data reinforces the case for continued monetary tightening, potentially providing near-term support for AUD/USD. Additionally, broader macro events this week include US Non-Farm Payrolls, ISM Services PMI, Canadian employment data, and an OPEC+ meeting, all of which could inject significant volatility into AUD crosses and major pairs.