ANZ Research sees AUD/NZD a sell-on-rallies into year-end.

"We see the pair nearing its cycle peak, given our expectations of 75bp of RBNZ tightening this year (broadly in line with consensus), compared to no further rate hikes from the RBA," ANZ notes.

"This suggests there is significant scope for AU-NZ rate differentials to converge over the medium term. We therefore view further rallies in AUD/NZD as opportunities to enter fresh short positions and expect the pair to end the year at 1.17," ANZ adds.