Morgan Stanley info comes vai eFX from late last week
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- We recommend short NZD/CAD positions as the growth outlook in Canada increasingly contrasts with New Zealand. We expect a cooling housing market in New Zealand to contrast with the housing market in Canada, where prices have not risen as fast or as far as in New Zealand
- Finally, expectations for energy disruptions in Europe will likely keep oil prices supported, putting upward pressure on CAD crosses
MS see the cross moving towards 0.80