The RBA seems to be slightly constructive on trades with China; the rhetoric on the exchange rate if Aussie dollar was similar, with emphasis that it needs to be lower for a "sustained period".
There was further discussion of spare capacity despite better labour market data.
RBA reckons GDP growth will remain below trend, inflation likely to be contained, sustained fall in AUD necessary.
Overall, it was a mixed bag in its assessment, but consistent with an on-hold stance and mild easing bias given continued intermediate trend growth and well-contained inflation outlook.
Intraday rallies of AUD/USD have evidenced some sort of bearish candlesticks such as hanging man and spinning tops in between. Hanging man on upward rallies signifies buying interest to end and bears actions to resume.
We could foresee 0.7625 on declines the most likely event & 0.7792 as upside targets, which means 80 pips on upside and 120 pips on downside from current levels.
