Job vacancies, retail sales, home building and house prices have all indicated a brisk recovery is underway, seemingly lessening the need for more monetary stimulus.
At the same time, the US dollar has been under pressure as the country's budget and trade deficits expand rapidly, requiring ever-more borrowing from abroad.
James said Australia's broad success in managing the pandemic would likely support a rapid economic and market recovery and push the Australian dollar towards 78 US cents.
The decline in the US dollar is lifting prices for many commodities priced in the currency, supporting earnings from resource exports out of Australia and New Zealand.
Experts said there was no evidence that vaccines would not protect against the new virus variant, but Britain's chief scientific adviser said that in the meantime tighter restrictions on public life in Britain were likely.
That deficit is being funded by the biggest government borrowing program in Australian history, but so far demand for the debt has been more than ample.