Morgan Stanley went long AUD/NZD at.....>

AUSSIE-KIWI: Morgan Stanley went long AUD/NZD at the NY close on Thursday, with

a target of NZ$1.1200 and a top at NZ$1.0440.

- Morgan Stanley reason that "the RBA signaled that it is optimistic about the

medium-term outlook,and the labor market has been adding full-time jobs at a

healthy pace. We expect the RBA to remain on hold in September and October,

disappointing a market expecting a cut in October. The RBNZ has shown its

willingness to deliver large surprise cuts,

and may move to provide further accommodation in the coming months - sooner than

the RBA. NZD should also continue trading

lower due to the combination of trade tensions and softening data. The high

degree of sensitivity of NZD to rate differentials suggests that more dovish

RBNZ actions would keep NZD trending lower. The key risk to the trade is that

trade tensions abate, spurring a rebound in trade-sensitive currencies like

NZD."