Early Tuesday morning in Asia, Morgan Stanley came out with their research conveying bullish bias for the AUD/NZD prices despite keeping a neutral outlook for AUD/USD while saying, “but continue to turn more constructive on AUD, particularly on crosses.”
The investment bank also said, “We think markets are underestimating the speed with which the Australian economy will recover once COVID-19 vaccinations are rolled out more widely in the coming months.”
“Moreover, global growth expectations are likely to be re-rating too low over time, raising the chances of an upside surprise, supporting cycle-sensitive AUD,” added Morgan Stanley.
Also read: AUD/USD holds onto recovery moves around 0.7200 on softer USD