ANZ Research likes buying NZD/USD on dips below 0.56.

"We think this sell-off has been extreme and is reflecting multiple factors: weaker global risk sentiment, NZD’s lower carry relative to the AUD, the negative terms of trade shock from elevated oil prices and the USD firming. NZD/USD is fundamentally undervalued, but underperformance may persist until the next RBNZ and Fed meetings," ANZ notes.

"Although the pair may consolidate over the next few weeks, year-end seasonality should provide some upside. Any easing in Middle East tensions would support high-beta currencies such as the NZD. We therefore view dips below 0.56 as a buying opportunity," ANZ adds.