Australian dollar - Morgan Stanley long term view is 0.65 for AUD/USD

Morgan Stanley are out with a longer term view on the AUD

• Looking for 0.65 in 2019
• Citing the Australian yield advantage against the US disappearing

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While that's a longer view, this also from the MS weekly note on the Australian dollar:

Weak Economic Fundamentals in AUD ... Bearish

• We are bearish on AUD despite anticipated USD weakness. AUD has been sensitive to the US 2y yield, and the upside surprise to US core CPI in October will probably lead to a higher core PCE reading next week, adding to AUD weakness. Weaker-than-expected wage and employment data out of Australia causes us to stick to our narrative of deteriorating economic conditions as global funding costs rise. Positioning in AUD is still long, and we see the 0.77 level as a key resistance to watch