First, their AUD/USD and AUD/NZD forecasts

(oh, and h/t and thanks to @AntBarton89 !)

OK, onto their reasoning and outlook for the RBA (bolding is mine):

We see the AUD falling gradually against the USD in 2017.

  • Although improving domestic fundamentals and a less dovish RBA should provide support for the AUD, external factors are likely less favourable
  • China's plans to curb property speculation and informal sector credit growth, and to run a less easy monetary policy, mean that the support for commodities could wane.
  • Our Commodities Research team believes that the price rally in iron ore is not sustainable and forecast prices to fall to the mid-$50s/t in H2 17.
  • The Australia-US yield differential would continue to narrow in 2017, taking into consideration our forecast of two more Fed rate hikes this year while the RBA remains on hold -historically, AUDUSD has more often than not moved in the direction of yield differentials.

RBA appears comfortable with current policy stance, but may turn incrementally more neutral.

  • We think the low household income growth, low wage growth and improving profitability continue to point to restraint at the RBA, despite the recent run-up in commodity prices.
  • We still expect the RBA to keep rates on hold through 2017. However, if growth starts to firm up, we think the guidance from the RBA may turn more neutral in coming months.

--

ps. The Reserve Bank of Australia meet next Tuesday (April 4)