NAB Research maintains a constructive bias on AUD/NZD in the medium to long term.
"Macro forces suggest further upside potential in the AUD/NZD cross rate. These include (i) the likelihood of a relatively stronger economic recovery in Australia (ii) higher AU-NZ interest rates and (iii) much less RBA vs RBNZ balance sheet expansion. Although difficult to predict, current relative commodity price trends are also in favour of the AUD," NAB notes.
"The 1.1350-1.14 mark is a level of strong long-term technical resistance, which is where our projections head into next year,"NAB adds.