The New Zealand dollar fell this morning immediately after the US Federal Reserve cut its rate for the first time in more than a decade.

The Kiwi was trading at US66c ahead of the cut and dipped to US65.43c afterwards, although it has since bounced back to around US65.70c at shortly after 7.30am.

Imre Speizer, a currency strategist at Westpac, said the dollar's fall in response to the cut was no surprise given the markets were widely expecting the cut.

But while the markets got the cut they were looking for, Speizer said they did not get the doveish signals from Federal Reserve chairman Jerome Powell.

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Powell instead said the cut was more of a insurance policy against an economic down-turn rather than a sustained downwards trend.

Speizer said he expected the dollar to be "frothy" this morning as analysts weighed out Powell's comments and considered the likelihood of further cuts.

The markets have priced in two and a half cuts - a drop to around 1.5 per cent from its current 2.25 per cent.

"The market is sticking with around two and a half cut. Our economic forecast is for another one."

Speizer said that may be revised based on how strong economic data is in the coming months.

The fall in the Kiwi will lessen the pressure on New Zealand's Reserve Bank to also cut its official cash rate although Speizer said it would also be considering similar issues to the US - low inflation and global risks including slowing growth.