eFXdata reports that NAB Research sees a scope for AUD/NZD to extend higher towards 1.0850.

"We see the recovery in AUD/NZD over the past few weeks as justified, post the overshoot to parity. NZ's government-imposed has bee more restrictive than Australia's which could impart a more preeminent scar on the NZ economy as businesses fold.

Importantly, the RBNZ's likely QE path is much greater than the RBA's, a positive fore for AUD/NZD," NAB notes.

"Based on these macro factors, the rise in the cross could have a lot further to run. ST and LT valuation metrics are higher than current spot. Key technical resistance is at 1.0850," NAB adds.