Via a Morgan Stanley research note, a summary of the Australian dollar view:
Despite the warning on what the Reserve Bank of Australia may be thinking (see below) MS hold a 'neutral view' on the AUD, but hedge with a 'bearish skew'. Analysts citing:
- AUD/USD is vulnerable to a short-term pullback
- risks are rising that the RBA pushes back on AUD strength
- and AUD/USD bullish sentiment is consensus
