Possibility of further aggressive easing from RBA fades

After today's monetary policy decision it seems like major easing bias from Reserve Bank of Australia (RBA) has somewhat eased.

The monetary policy statement is almost dull and nil in further hints.

Key highlights -

• As per RBA's view global rates, in spite of recent volatility remains at very low, especially compared to their longer run average. Even with FED hike ahead, RBA is not seeing any major tightening in the credit markets, thanks to ECB and BOJ.

• As per RBA, Australian economy is growing but with spare capacity and it expects to remain so going ahead. This means don't expect further much from RBA in tackling this slack.

• Inflationary pressure is contained from both ends, in spite of lower exchange rates. This clearly hints that policy is likely to remain stable.

• RBA is concern over house prices, especially in Sydney area. This is likely to remain key concern of RBA before easing rates further.

• In previous statements, RBA voiced for further declines in Aussie, this was missing in today's statement.

Aussie bulls are clearly enjoying the day. Aussie is up 1.5% against dollar, currently trading at 0.7385. Key resistance around 0.75 mark.

Though RBA's decision and statement might influence Aussie and keep it upward bias, it is unlikely to last long as economic factors and headwinds from China, still remains strong.