Goldman Sachs Research previews this week's RBNZ policy meeting and NZD outlook.

"This week’s RBNZ meeting seems unlikely to encourage further hawkish repricing across markets...Against a backdrop of much more hawkish reactions to oil price shocks from other G10 central banks, the RBNZ has sounded consistently dovish," GS notes.

"Without domestic policy support, we expect NZD to continue to trade in step with US yields for now. Despite the inflation-driven nature of the rise in 10y yields and tightening in FCI, the currency remains vulnerable to rising yields...

While the market has shown only limited signs of pricing in a larger hit to global growth, NZD is still likely to see weakening pressure from more persistent upward pressure to oil prices," GS adds.