AUD/USD: Morgan Stanley's recommended trade for this week

As it often does on Mondays, Morgan Stanley offers its top forex trading idea of the week.

"Forex traders should seek to sell the AUD/USD this week.

The AUD/USD failed to break the technical reistance level at 0.7530, which represents the high of 14 December and the moving average 200 days, offering a good risk/profit ratio for short positions.

Doubts regarding Brexit and Trump's election should maintain a risk averse environment, which is expected to impact high-yielding currencies such as the AUD.

The main risk to this trade is a continuation of the rise in prices of iron, of which Australia is a major exporter."