The U.S. Federal Reserve’s median interest rate projection for 2018 is 2.1%, indicating three interest rate increases this year. Our panel’s estimate of 2.33%, however, suggests a fourth interest rate hike could be delivered in 2018. Meanwhile, whereas the Fed projects, on average, that the federal funds rate will end 2019 at 2.9%, FocusEconomics panelists see the federal funds rate ending the year at 2.77%. https://www.focus-economics.com/country-indicator/united-states/interest-rate The Australian dollar is back below 80 US cents, offering some assistance to exporters and globally focused companies. The Aussie dollar is tipped to trade as high as 83 US cents in 2018, according to forecasts from CommSec. CommBank currency strategists have an end‑March forecast of 80 US cents and an end-2018 forecast of 83 US cents It's trading around 76.57 US cents, having briefly traded above 81 US cents in late January. CommBank currency strategists note that commodity prices have trended lower since late January, assisting AUD’s decline from above 81 US cents at the time. The US Federal Reserve on 21 March increased the Funds rate by 0.25% to a target range of 1.50%‑1.75% and lifted economic growth projections. "The US Funds rate is now above the [Reserve Bank of Australia's] RBA’s cash rate for the first time since December 2000. However, AUD generally increases during [Federal Open Market Committee] FOMC tightening cycles because a US economy strong enough to require higher interest rates is associated with a strong world economy and rising commodity prices," CommBank said. AUD is usually supported by generally higher commodity prices. https://www.commbank.com.au/guidance/economy/what-makes-the-australian-dollar-move--201605.html ANZ made slight adjustments lower to its AUD forecast. It now expects the AUD/USD to rise to 82 cents by the middle of next year (78 cents currently) before losing ground and finishing 2018 around 72 cents. Since the end of last year, National Australia Bank has raised its Australian dollar forecast and now has a more optimistic view for the Australian dollar compared to some of the other major banks. The bank expects the AUD to end 2018 around 77 cents, which is now even higher than ANZ's end of year outlook. Like NAB, Westpac upgraded its Aussie dollar outlook , but is still one of the more negative banks in its 2018 predictions. Similar to ANZ, Westpac expects the AUD to decline to 72 cents by the end of 2018. While the dollar hovers in the US 74+ and Australian inflation hovers around 1.8-1.9 the RBA does not have any room to rase interest rates Until these indicators change it will be steady as goes plain simple economic facts As far as the property market cycle goes it has its ups and downs like all markets. The trick is to time the cycle , the facts are to reduce risk do the homework, adopt the investment vehicle that best suits your intended time of investment, Don't listen to soothsayers ( fence sitters who missed the train) and are praying for it to come back Don't listen to the real estate agent who predict fortunes to be made its in their financial interest to make a sale In addition to this we have population growth The population of Victoria is expected to hit 10 million people by the 2050s and Melbourne's population will double by 2031, new figures indicate. Population growth will continue to be strong, according to new figures from the Department of Environment, Land, Water and Planning, and the capital will need another 2 million homes to accommodate the growth. The rising trends in births, life expectancy and migration are said to account for the strong population growth. These factors largely contribute to demand
