In a word, higher rates. Inflation is the number one target for central banks and that means expectations are now soaring for higher rates out of the RBA in their February meeting. Current expectations will now rise for a more aggressive RBA and a terminal rate that could rise higher than 3.5%. On balance this should keep the AUD supported again the NZD. However, the real event to look out for is a big divergence between the RBA and the RBNZ.