Morgan Stanley’s contrarian short-term strategy model identifies AUD/USD as a preferred short.

Although tactical investors are currently long AUD, the sentiment is likely stretched, and MS sees it as a crowded long, increasing the risk of a pullback.

With upcoming Fed policy risk and markets already moderately short USD, a hawkish surprise or stabilizing USD sentiment could push AUD/USD lower.

AUD is also exposed to China sentiment, and any disappointment there could further weigh on AUD.

SHORT AUDUSD

May 07 2025

Pending

Published today

0.64283

Current price

0.65006

Entry price