This week the RBNZ will decide if they will hold interest rates steady after they look a 50 basis point cut during their last meeting. This shocked the market as they had forecast only a 25 basis point cut previously, therefore the NZD took a larger loss. This week the RBNZ is expected to hold rates steady, on the other hand, the RBA is looking at an additional rate cut.
This means we could see some strength going back into the NZD. The AUDNZD is also extremely overbought, as you can see this has provided a great opportunity to sell from previously.
Keep in mind: If the RBNZ do cut interest rates rates, this trade will not work out.