ANZ's weekly look at the economy focuses on public sector spending

But, they spare some space for the Australian dollar and the Reserve Bank of Australia

RBA:

  • We see rates on hold at 1.5%, but all the risks are to the downside. If the RBA does ease then QE talk will start.
  • See the cash rate at 1.5% through to March 2018

AUD/USD:

  • Forecast to 0.72 for March 2018
  • Recent gains in the AUD could consolidate, but lack of momentum in the domestic economy is an issue.

More AUD forecasts, by end:

  • June 2017 0.76
  • September 0.74
  • December 0.72
  • March 2018 0.72