Goldman Sachs flags a scope for an extended reversal in AUD/NZD along with further spike in NZD/USD. 

"AUD/NZD on the move lower overnight with the combo of a more hawkish RBNZ coming at the same time as weaker flash CPI out of Australia. With a move from 1.0650 just over a year ago to above 1.2288 high overnight, the market now wary of a potential reversal in AUD/NZD alongside a number of other crosses within the G10 space," GS notes.

"Any reversal would more be led by the NZD side of the equation, with a large short position having built up over the past few months and a path to a reversal likely to come from some kind of Iran deal and a broader USD sell off. We look for a break above 0.5891 (100dma) as the first level to put pressure on existing shorts in NZD," GS adds.