Australian Spending Surges as Services Lead, Global Markets Eye Central Bank Risks

• Australian households stayed resilient in November, with spending climbing 1.0% month-on-month, well above the 0.6% expected.
• October’s numbers were also revised higher to a 1.4% gain, marking the strongest consecutive monthly lift since 2022.
• The boost came mostly from services, up 1.2%, as major concerts and sporting events drew crowds. Goods spending also picked up, rising 0.9%, helped by Black Friday deals.
• Over in the US, Fed Chair Jerome Powell confirmed the FOMC has been served with grand jury subpoenas by the Department of Justice. He highlighted concerns that political pressures could sway monetary policy, underlining the importance of central bank independence.
• At home, markets will watch Westpac’s January Consumer Sentiment, while offshore investors turn their focus to the US CPI release.