Bank of New Zealand currency strategist Raiko Shareef said he suspected the kiwi would run out of steam at US80c as investors had little reason to support the currency at above that level.
The New Zealand dollar has dropped like a stone since hitting US88.37c in July.
A sharp fall in commodities prices, some "jaw-boning" rhetoric from Reserve Bank Governor Graeme Wheeler, and active intervention by the central bank, have all helped to drive the currency down.
The impact of the Reserve Bank's verbal and transactional interventions has been helped in no small way by a turnaround in the US dollar at the time.
Shareef said the Fed's minutes painted a far more balanced picture of the US economy and pointed to risks.
"There is also a sense that the global growth story is slowing in China, Europe and Japan," he said.
"Investors who had been quite long on the US dollar had to curb their enthusiasm, which saw the New Zealand dollar spike up through US79c.
"The market was ripe for a correction in the US dollar and that's what we have seen in the last week or so," he said.
Strategists saw yesterday's dip in the US dollar as temporary, and expected the currency to resume its upward trend in line with a more positive economic outlook for the US.
They agreed that the New Zealand dollar is heading lower - it's just a question of how far.
The Bank of New Zealand expects the currency to fall to US73c by the end of 2015, but for the currency to consolidate in a US76c to US80c range in the next three months.
In September, the dollar fell below US78c for the first time in more than a year when the Reserve Bank published figures showing it intervened in foreign exchange markets by selling $521 million in August.
A week earlier, Wheeler had surprised markets with an unscheduled statement, accompanied by seven pages of supportive material, saying the kiwi was "unsustainably and unjustifiably high", heavily hinting that it was in intervention mode.
In the Federal Reserve's minutes agreed last month they said they would begin raising interest rates only when measures of the economy's health and inflation signalled the time was right.
US stocks surged after the release of the minutes as investors appeared to take the Fed's discussion as a sign that the bank was in no hurry to raise interest rates. Fed officials also discussed the potential adverse impacts of a stronger dollar.
For the past two years, US inflation has been running well below 2 per cent, giving the Fed room to keep rates low in an effort to bolster the economy and generate more jobs.
The Fed's short-term rate has been at a record low near zero since December 2008 in an attempt to bolster the economy after the global financial crisis.
Dollar bounce
• The kiwi jumped yesterday after minutes from a US Fed meeting showed it was more circumspect about the US economy.
• US stocks surged as investors appeared to pick that the central bank was in no hurry to raise interest rates.
• Currency strategists say the rally in the NZ dollar is a blip.
• The dollar has dropped like a stone since hitting US88.37c in July.
- additional reporting AP
