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Morgan Stanley Research maintains a short AUD/USD position targeting a move towards 0.6200.
- "The RBA surprisingly hiked rates last week - in line with our paid RBA trade recommendation...We see the prospect for another 25bp hike at the June meeting or the July meeting," MS notes.
- "That said, we continue to recommend short AUD/USD positions. We see continued risks to risk sentiment stemming from the US regional banking sector. Short AUD positions are a particularly efficient way to position for a challenging risk outlook, given AUD's high correlation to risk demand (proxied by the S&P 500) and relatively low carry," MS adds.
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RBA current cash rate:
