Morgan Stanley Research maintains a short AUD/USD position targeting a move towards 0.6200.

"The RBA surprisingly hiked rates last week – in line with our paid RBA trade recommendation...We see the prospect for another 25bp hike at the June meeting or the July meeting," MS notes.

"That said, we continue to recommend short AUD/USD positions. We see continued risks to risk sentiment stemming from the US regional banking sector. Short AUD positions are a particularly efficient way to position for a challenging risk outlook, given AUD's high correlation to risk demand (proxied by the S&P 500) and relatively low carry," MS adds.