Goldman Sachs Research likes short AUD/NZD exposure around current levels.

"While our economists pulled forward their expectation for RBNZ hikes and now expect two hikes year in July and September (prior +25bp hikes in Dec26/Feb27/May27), they recently shifted their call for the RBA in the opposite direction, pushing back their call for a final 25bp hike from June to August. On the data front, Australia data has broadly disappointed," GS notes.

"With Australia-New Zealand rate differentials showing signs of having peaked, more hikes priced for the RBNZ this year than any other G10 central bank, stretched positioning, and NZD well positioned to benefit from "de-escalation", we think the impetus for a more meaningful correction lower in the cross is building. Clarity on a normalization in global energy flows would apply clear pressure in that direction, but at this juncture we think risk-reward in short AUD/NZD is appealing from a relative data and policy perspective," GS adds.