NZD/USD headed to 0.7374 in carry trade recovery?

Currently, NZD/USD is trading at 0.7301, up 0.43% on the day, having posted a daily high at 0.7311 and low at 0.7254.

NZD/USD has been on a comfortable bullish ride since the middle of May and despite the resurgence of the greenback, it has held its ground within that bull trend, recovering fro the aforementioned lows. 

NZD/USD benefits from the search for carry, as Kit Juckes, an economist at Societe Generale explains, "Fed gradualism is the foundation stone of the search for carry, the appeal of high-yielding currencies and the appeal in G10FX of those where the first rate-hike is slowly coming into view. CAD, AUD and NZD should all continue to benefit."

NZD/USD levels

NZD/USD managed a new high yesterday at 0.7344. Yellen caused a bid in the dollar and yields since,(Treasury yields climbed after their biggest advance since January following Fed Chair Janet Yellen’s indication that the U.S. economy can withstand higher interest rates; 10-year up 1bp), but on a continuation of the bid, there is scope for 0.7374 being the high for 2017. To the downside, 0.7250 area guards 0.7200 guards 0.7145 and a break back below 0.7080/90 are key near-term downside areas. On the wide, the 0.7375 YTD highs are a key target to the upside and to the downside, a break below 0.7080/00 opens 0.6970.