Employment is likely to be much weaker going forward and the jobless rate will keep rising as the economy cools. Interest rates are on hold.

We still think commodity prices are at their peak and will gradually come off, but we've just pushed out the timing a little bit.

The market is now taking a pause to assess just what Rita will do. It won't fully digest Rita until Monday, although the forecasts are looking a little better than yesterday at present.

The interest-rate advantage with the U.S. will continue to narrow and that will weigh on the Australian dollar.

The Reserve Bank has no need to tighten or to ease rates.

We don't think there is anything to warrant a rate move from the central bank. Even though building approvals rose in November, housing is still in correction mode.