MS remarks via eFX.
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Morgan Stanley Research maintains a bullish bias on CAD and a short AUD/CAD exposure targeting a move towards 0.8600.
- "We think that higher oil prices and a more hawkish BoC should translate into a firmer CAD, particularly against risk sensitive currencies like AUD," MS notes.
- "USD/CAD may stay supported due to the Fed's continued signaling of hawkish policy to come, but given the recent divergence (which we expect to continue) between energy and metals prices, we think short AUD/CAD is the best expression of CAD longs," MS adds.