ANZ expects the kiwi to fall to about 59 US cents by the end of next year, before picking up again in 2017.
The kiwi is headed for a 14 percent decline against the greenback this year, but most of the movement occurred in the first half of the year, with the currency budging little in the second six months even though Reserve Bank governor Graeme Wheeler cut the benchmark in July, September and December.
That's largely because financial markets had already priced the interest rate reductions into the currency, said the ANZ's Tuck.
The broader trade-weighted index, which measures the kiwi against the currencies of the country's main trading partners, has declined a more modest 7.3 percent so far this year. It was recently at 73.39 from 79.15 at the start of the year. However unlike the kiwi/US rate, the broader TWI has actually advanced since the middle of the year, reflecting economic weakness in other economies which has prompted their central banks to add further stimulus.
"We completely agree with the RBNZ that it is appropriate for the currency to go lower but we are in a world where over half the economic input of this world is on a clear easing bias or engaged in QE (quantitative easing)," Tuck said. "That makes the New Zealand dollar the tallest pygmy in the pack and when you are the tallest pygmy there's not much you can do about it."
In 2016, the kiwi is likely to remain strong against the Australian dollar and the Japanese yen and may decline later in the year against the euro and the British pound as their economies strengthen, Tuck said.
"We see 2016 as quite a transition year for markets," he said. "The Fed led us into QE and the Fed is hopefully going to lead us out of QE. We expect by the end of 2016, we can get back on to hopefully a much more normal global economic environment."