Goldman Sachs Research discusses AUD/NZD outlook.

"AUD/NZD now stands at its highest levels in over a decade. We think this outperformance is justified, as it looks broadly consistent with relative terms of trade. AUD/NZD has seen asymmetric outperformance on days when oil prices rise, and we think this dynamic helps reveal investor sentiment and an expectation that the current environment is likely to remain supportive for AUD," GS notes.

"Positioning has also contributed to the rally in AUD/NZD, though it looks increasingly stretched. This raises the risk of reversal should the RBA's communications turn less hawkish, the domestic data disappoint, or the terms of trade backdrop become less supportive," GS adds.