Bank of America Global Research discusses the AUD, and NZD outlook and targets AUD/USD at 0.74, NZD/USD at 0.66, and AUD/NZD at 1.12 by end of the year.

"We are bullish AUD/USD in the medium term due to the lagged impact of China property easing and reopening, alongside the Fed ending its tightening cycle in 2023. We forecast 0.74 by year end but more neutral near term (0.69 end-1Q) especially given the ongoing repricing of US rates and USD strength," BofA notes. 

"We expect a gradual recovery in NZD vs. USD in 2023 to 0.66 by year end but expect it to underperform AUD, as the latter is better poised to benefit from China’s policy pivot (Antipodean divergence 01 December 2022). Near term risks are to the downside due to USD strength and potential dovish pivot from the RBNZ," BofA adds.