RBA retains easing bias, no urgency noted

On its RBA minutes release, the central bank said there are early indications that the easing campaign is having positive impact on consumers. The RBA considers there is still room to ease further, if necessary. One of the factors that allows the RBA to cut further would be the inflation outlook, which remains around average mandate.

With regards to the value of the Australian Dollar, the RBA minutes said it is still high despite the slide in terms of trade, which is 17% off 2011 highs. While the statement has more dovish connotations than not, it comes as a no surprise as most information had already been published at the latest RBA monetary policy statement.

AUD/USD holds steady above 1.03 post release. After the minutes, rate futures are pricing a cut from the RBA in March at 29%.