NZD/USD seen falling towards 0.6600 – Morgan Stanley

Analysts at Morgan Stanley offer their outlook on NZD/USD, with a drop expected despite the hawkish RBNZ tilt.

Key quotes

“We remain bearish on NZD/USD targeting 0.66.”

“In addition to USD-positive forces, we think RBNZ pricing remains aggressive and is insufficiently pricing in risks of COVID-19 transmission in New Zealand.”

“NZD positioning is fairly balanced, contrasting with AUD positioning which is a bit more stretched to the downside, suggesting that risk/reward is relatively more attractive.”