Bank of America Global Research sees NZD upside vs GBP and EUR over the coming weeks.

"A more hawkish RBNZ stands in contrast to our expectations for the rest of the G10 commonwealth countries makes it an attractive G10 long. This is compounded by significantly short speculative market positioning in NZD," BofA notes.

"We would generally prefer NZD shorts funded in GBP or EUR. This week also saw the official transition to the Burnham government in the UK, which has already brough on some financial market noise, injecting more 2-way risk into gilts and the pound. As it relates to the EUR, the NZD is attractive on a vol-adjusted carry basis, is bi-laterally insulated from potential energy terms-of-trade deterioration, and stands to benefit from higher agricultural and metals outlook," BofA adds.