As expected, the Reserve Bank of Australia (RBA) voted to hold its official cash rate at 1.50%. The policy statement noted improvements in the global economy as well as higher inflation in most countries. It also highlighted the US Federal Reserve's policy stance, which is no longer dovish. Here's the part of the RBA statement that focuses on Australia's economy and monetary policy.Statement by Philip Lowe, Governor;Monetary Policy StatementThe RBA's growth outlook is 3% over the next couple of years, which is better than its previous forecast. Here's the part from the statement that talks about the Australian economy and the RBA's monetary policy decision:In Australia, the economy is continuing its transition following the end of the mining investment boom. GDP was weaker than expected in the September quarter, largely reflecting temporary factors. A return to reasonable growth is expected in the December quarter.The Bank's central scenario remains for economic growth to be around 3 per cent over the next couple of years. Growth will be boosted by further increases in resource exports and by the period of declining mining investment coming to an end. Consumption growth is expected to pick up from recent outcomes, but to remain moderate. Some further pick-up in non-mining business investment is also expected.The outlook continues to be supported by the low level of interest rates. Financial institutions remain in a position to lend. The depreciation of the exchange rate since 2013 has also assisted the economy in its transition following the mining investment boom. An appreciating exchange rate would complicate this adjustment.Labour market indicators continue to be mixed and there is considerable variation in employment outcomes across the country. The unemployment rate has moved a little higher recently, but growth in full-time employment turned positive late in 2016. The forward-looking indicators point to continued expansion in employment over the period ahead.Inflation remains quite low. The December quarter outcome was as expected, with both headline and underlying inflation of around 1½ per cent. The Bank's inflation forecasts are largely unchanged. The continuing subdued growth in labour costs means that inflation is expected to remain low for some time. Headline inflation is expected to pick up over the course of 2017 to be above 2 per cent, with the rise in underlying inflation expected to be a bit more gradual.Conditions in the housing market vary considerably around the country. In some markets, conditions have strengthened further and prices are rising briskly. In other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Growth in rents is the slowest for a couple of decades. Borrowing for housing has picked up a little, with stronger demand by investors. With leverage increasing, supervisory measures have strengthened lending standards and some lenders are taking a more cautious attitude to lending in certain segments.Taking account of the available information, and having eased monetary policy in 2016, the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.Full Official Release on www.rba.gov.auThe AUD/USD was rallying ahead of the RBA release and extended higher briefly afterwards. However as we will see in the 1H chart below, price missed the previous highers around 0.7695 and instead found resistance at 0.7680. AUD/USD 1H Chart 2/7(click to enlarge)Price Top:- The 1H chart shows AUD/USD complete a price top. Or we can just say that price consolidated by broke lower as the dust settled after the initial RBA-reaction.- The bearish outlook will run into a cluster of support factors around 0.76. - This is the top of a previous consolidation range. This is also where the 200-hour simple moving average and a rising trendline will challenge price. - A break below 0.7590 would signal further downside. AUD/USD Daily Chart 2/7(click to enlarge)Choppy with Bullish Bias:- The daily chart shows a market that has been choppy as it transitioned from the bullish mode to a more sideways consolidation mode.- However, since the end of 2016, price has been rallying sharply and suggests the bias is bullish. In other words, AUD/USD has the 0.7760 up to the 0.7830 highs in sight. - If price can hold above 0.76, these highs are the targets in the short to medium-term.- The RSI has tagged 70, which reflects bullish momentum. Let's see if this momentum indeed pushes AUD/USD towards those highs. Bearish Scenario:- On the other hand, if price breaks below 0.76, it opens up the 0.75 pivot, which will be an important support for the bullish scenario towards the 0.7830, 2016-high. - The 0.75 area can act as more of a confirmation for the bullish scenario than for a bearish one. A break below 0.75 doesn't necessarily been bears have taken over. But, it is the central pivot of the current range and if price holds above it, the push to 0.7750 and 0.7830 is likely.