Citi discuses AUD/NZD outlook and sees a limited scope for further upside.
"AUDNZD does not have a significant correlation to the long-term interest-rate spread either over the long term, but similarly to AUDUSD, the correlation has recovered recently," Citi notes.
"The recent rebound by AUDNZD is consistent with the small contraction in the yield spread. However, given the difference in the stances towards the normalization of monetary policy between the RBA and the RBNZ, the yield differential will likely begin to widen again.
We expect a rebound in AUDNZD to hit resistance at the February low of around 1.055," Citi adds.