Morgan Stanley bullish AUD crosses, time to buy AUD/USD "may be drawing closer"

Morgan Stanley on their outlook for the Australian dollar

• "We remain constructive on AUD on crosses and think the time to buy AUD/USD outright may be drawing closer...We think global and local data expectations should be inching closer to bottoming. A pick up in local vaccinations should reduce the likelihood of lockdowns and give the RBA scope to keep tapering, while PBoC easing and local fiscal spending should eventually passthrough too"
• "AUD positioning remains short and thus scope remains for a positioning squeeze. Our USD-positive bias keeps us wary of long AUD/USD and we prefer AUD/NZD longs"

MS say AUD/NZD spot targeting a move towards 1.08