Bank of America Global Research discusses tech dominates cross-border equity flows and their impact on FX markets.

"Our cross-border equity flow analysis suggests that USD, AUD, and CAD have the greatest relative exposure to a wobble in AI sentiment. Of these, AUD arguably has the least attractive risk-reward as it is vulnerable to both a broad risk-off move, as well as a tech-focused unwind," BofA notes.

"By contrast, EUR and NZD have benefited relatively little from tech flows in recent years. The domicile breakdown flags that US investors have allocated less to Euro-area equities vs. other countries in 2026, potentially providing less flow support for EUR/USD this year . A further improvement in tech-sector sentiment would therefore, at the margin, favour other currencies over them. Conversely, EUR and NZD could be useful diversifiers if the AI narrative falter," BofA adds.

BofA targets AUD/USD at 0.70, and NZD/USD at 0.57 by year-end.