NZD/USD is within strike distance of all time high post float. NZD/USD carry trade that started in 2013 looks unstoppable right now. New Zealand has been tightening its monetary and has increased the interest rates 3 times this year to 3.25%. Analysts are expecting a 4th interest rate hike this year with the central bank pledging to increase the interest rates 225 basis points in the coming 2 years. So in the short term NZD/USD carry trade looks pretty strong. However US FED is planning to increase the interest rates in the future and end QE by October. This can unravel the carry trade. Falling milk prices and deteriorating terms of trade can also unravel the trade. Some analysts don’t expect much more upside for the kiwi, however. Emma Lawson, senior currency strategist at National Australia Bank, sees the New Zealand dollar falling to around $0.80 by year-end.