Morgan Stanley tightens its AUD/USD stop, to lock in profit as the pair continues to grind higher.

"We believe that in the near term, AUD will continue to benefit from the prospect of the central bank policy response to the global slowdown.

In Asia and China in particular, monetary stimulus measures already appear to be feeding through," the brokerage says. Morgan Stanley targets 1.0890, having entered at 1.0560 with a 1.0600 stop.