Another 25bp rate cut by the Reserve Bank of New Zealand on 28 May seems likely. Markets are fully pricing it in, following the RBNZ’s previous indications that growth remains a major concern, ING's FX analysts Francesco Pesole and Chris Turner note.

US-China trade tensions can drive AUD/NZD to 1.10-1.11

"However, market pricing for two additional cuts after May looks a little too dovish given non-tradable inflation remained elevated at 4% and the unemployment rate flattened at 5.1% in the first quarter."

"The Kiwi dollar should keep acting as a lower-beta version of AUD to trade news. Further de-escalation in US-China trade tensions can drive AUD/NZD back to the 1.10-1.11 area where it traded at the start of this year."