Goldman Sachs has updated its forecast for the AUD/NZD currency pair, anticipating less of an upward trend in the short term. This revision is due to weaker-than-expected growth data from China and a worsening sentiment towards the region, both of which put pressure on the Australian dollar (AUD).

Given the close ties both Australia and New Zealand have with Chinese demand, a slowdown in the latter's growth affects both currencies. However, the AUD is slightly more sensitive, limiting its potential relative upside. 

On the New Zealand side, the latest economic data and fiscal spending news seem likely to push the Reserve Bank of New Zealand (RBNZ) towards additional rate hikes, despite the bank recently removing its explicit tightening bias. 

As a result, the 3-month AUD/NZD forecast has been reduced to 1.07 from 1.10 previously.