Today’s statement of monetary policy from the RBA confirmed what most AUD/USD already knew, that there is no case for a change of rates anytime soon.

Some of the key points that we can take away from the statement are:

• GDP trending above expectations.
• Employment to continue to be strong and unemployment rate dropping
• Falling AUD positive for growth
• Housing clearly slowing in Sydney and Melbourne amid tightening credit conditions.

Generally, this is in line with what the RBA has been putting out of recent times. The drop in the unemployment recently appears to be a real boost for growth in the eyes of the RBA.

There are still those around even calling for a rate cut, so to me, that suggests we are still some ways off a hike.

Aussie Outlook

The AUD/USD is trading just below the major level at 0.7300, and has fallen back towards 0.7250.

The SoMP hasn’t made an impact on the AUD/USD just yet and it likely won’t in the short term.

Given the fact that the RBA reaffirmed that there is no case for a rate change at the moment, might put the brakes on the short little rally that we’ve had over the last week or so.