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.” 

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