AUD/NZD: Bearish amid RBA-RBNZ monetary policy divergence – Morgan Stanley

Dhwani Mehta FXStreet

Analysts at Morgan Stanley remain neutral on NZD/USD while maintaining a bearish view on AUD/NZD amid RBA-RBNZ monetary policy divergence.

Key quotes

“We are neutral on NZD/USD still but risks are increasingly skewed to the downside as the chances of a broader-based USD rally are rising. “

“We continue to like AUD/NZD shorts as a structural expression of RBA-RBNZ policy divergence as the RBNZ's "Great Hawkish Shift" should continue over time.”

“We might consider re-entering NZD longs at a future date should the currency weaken enough which would render risk/reward sufficiently attractive, though we are not yet at that point especially if the positioning is likely to adjust further.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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