Craigs Investment Partners broker Peter McIntyre said yesterday (Thursday) the kiwi touched A95c on Wednesday before backing off slightly to A94.72 yesterday.
Against the US dollar, the kiwi rose to US77.1 before falling back to US76.95 but the volatility had more to do with the strength of New Zealand's economic growth data, measured by GDP, than the Fed.
''We are heading for parity with Australia. They are looking at interest rate cuts and we are looking at rising rates.''
There was a feeling New Zealand Reserve Bank governor Graeme Wheeler had lost his way with parts of the economy. While hinting the next interest move would be upwards, to cool the Auckland housing market, Mr Wheeler was still trying to talk down the currency.
The two did not go hand in hand, Mr McIntyre said.
Weaker commodity prices and the structural change of the Australian economy was starting to hurt. House prices were still under pressure on the eastern seaboard but otherwise, economic growth was not the same as had been seen in New Zealand.
Some of Australia's problems were based on historical data feeding through to the value of the transtasman currencies, he said.
On October 31, the New Zealand dollar was trading at A88.5c and on Wednesday it reached A95c.
''Something major will have to happen in our economy for us not to test parity with the Aussie dollar. Falling dairy prices will filter through regional economies in the next 12 to 18 months but there is more good news in New Zealand than Australia - other than the weather.''
Federal Reserve chairwoman Janet Yellen offered a strong signal the Fed was on track to raise interest rates sometime next year, altering a pledge to keep rates near zero for a ''considerable time'' in a show of confidence in the US economy.
Ending a two-day meeting against a backdrop of solid domestic growth but trouble overseas, Dr Yellen said the US central bank would take a patient approach in deciding when to push borrowing costs higher.
After a week of turbulence in global financial markets, the Fed looked firmly beyond difficulties in the euro zone, Japan and Russia and offered a mostly upbeat assessment of the US economy's prospects.
Mr McIntyre said central bankers around the world must have major concerns about what is happening with a lack of inflation in global economies.
The falling price of oil was deflationary and there was a question now of whether another Japan-type scenario of deflation would arise.
Central banks needed to advise whether they believed they were flexible enough to protect economies from deflation.
There was no inflation in New Zealand and a strong element of that was the falling price of oil when oil made up part of almost every man-made material, he said. Central banks would not want to put interest rates up, hoping lowering rates would stimulate economies into growth.
''Deflation will mean investment decisions will be deferred or postponed in the expectation things will become less expensive.''
Russia was now causing international concern as the Russian central bank was trying to stave off the falling rouble, Mr McIntyre said.
Russia had banned imports from the euro zone, which was now struggling. Russia was struggling under imposed sanctions and its one major trading partner, China, was experiencing slowing growth.
