Morgan Stanley has flagged the Australian dollar as vulnerable after the Democratic sweep in the US midterm elections. The bank argues that the currency now trades closely with investor sentiment toward AI-driven stocks and is exposed to any regulatory pushback against the AI infrastructure build-out. In its research on the election results, the bank kept its overweight call on global equities, citing resilient growth, corporate earnings and continued AI investment. It sees the multi-year AI capital spending cycle as intact. But it warned that the results could add near-term friction for AI infrastructure, as newly ... (full story)