More on Morgan Stanley looking calling AUD/USD to 0.65

The MS call is for AUD/USD in 2019. I posted their shorter term view here:

• Australian dollar - Morgan Stanley long term view is 0.65 for AUD/USD

More on their longer term call, via Hans Redeker, London-based chief global currency strategist:

• Australia's yield premium to the US to disappear
• Developing-market currencies to benefit due to super attractive real yields
• Aussie yield premium (10-year bonds over Treasuries) around 20 basis points (compared to lows about 15 in June)
• Yield similarly low in 2001 had the ZAUD below 50 US cents (under 48 cents actually)
• Redeker says forecast at 0.6500 is "not very ambitious"

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For 2018, MS says AUD/USD to 0.67