State Street’s APAC head of macro strategy Evans said the Reserve Bank of Australia (RBA) raised the cash rate 25bps to 4.85% in a 6-3 vote but retained a dovish tint. The RBA’s emphasis on slowing output signals concern about a weakening real economy that could help cool inflation and lower odds of further tightening. Evans said real-money investors have begun trimming previously extreme AUD overweights. Any renewed uncertainty about the future rate path could add downside pressure to the curre

State Street’s APAC head of macro strategy Evans said the Reserve Bank of Australia (RBA) raised the cash rate 25bps to 4.85% in a 6-3 vote but retained a dovish tint. The RBA’s emphasis on slowing output signals concern about a weakening real economy that could help cool inflation and lower odds of further tightening. Evans said real-money investors have begun trimming previously extreme AUD overweights. Any renewed uncertainty about the future rate path could add downside pressure to the currency.