Central bankers in Australia will scrutinise consumer and business confidence figures amid a dearth of hard economic data this week.
Sentiment has plummeted amongst households and employers since the outbreak of the Middle East conflict in late February.
The Westpac-Melbourne Institute consumer confidence survey, due to be released on Tuesday, will give a sense of how much global uncertainty and the federal budget continue to weigh on spending decisions and inflation expectations.
Also on Tuesday, NAB's business sentiment survey will provide a read on the extent to which businesses are passing on cost pressures.
Financial markets are fully priced in for the Reserve Bank to hold the cash rate at 4.35 per cent at its June meeting, but one more rate hike is still expected by the end of the year.
