Macro
Australia household spending beats, up 0.8% in June (expected +0.2%, prior +1.3%)
Australian household spending rose 0.8% in June to A$81.3 billion, vastly exceeding the 0.2% consensus forecast and following a 1.2% May gain. The beat was driven by discretionary categories—hospitality, recreation, household goods, and EV purchases—suggesting genuine consumer confidence rather than price-driven necessity spending. With inflation elevated and the labour market holding up, this data strengthens the case for the RBA to extend its tightening cycle, likely supporting AUD strength and upward pressure on rate expectations.
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