NZD/USD: Tactically bullish amid expectations of higher risk asset prices – Morgan Stanley

Dhwani Mehta FXStreet

Analysts at Morgan Stanley offer their short-term outlook on NZD/USD, calling for the upside amid a better appetite for riskier assets.

Key quotes

"We remain tactically bullish on NZD/USD, best expressed via options (1m ATMF calls), and short AUD/NZD.”

“Short-term, we think a consolidation in US yields and higher risk asset prices should benefit NZD/USD, which tends to gain on average in periods of "risk-on" Regime 4.”

"We prefer options, though, to limit downside losses should risk assets weaken suddenly."

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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