NZD/USD off session peak, upside remains capped around 0.7350

Having peaked at session high near 0.7340 region, the NZD/USD pair has now trimmed majority of its gains and is now trading back around 0.7300 handle amid thin liquidity on the back of Labor Day holiday in the US. 

Earlier on Monday, better-than-expected Chinese services PMI print for August provided an initial boost to the major. Adding to this, Friday's disappointing headline NFP print now seems to have eased worries of an imminent Fed rate-hike action in September and boosted demand for high-yielding currencies - like the kiwi. 

The pair, however, failed to surpass Friday's swing high as mildly disappointing NFP did little to change the odds of an eventual Fed rate-hike action later this year and hence, attracted some US Dollar buyig interest at lower levels, which eventually restricted further upside for the pair and exerted some selling pressure around the pair. 

In absence of any major economic releases from the US, focus now shifts to Tuesday's GDT price index that would drive the major in the near-term.

Technical levels to watch

Further weakness below 0.7300 handle is likely to find support at 20-day SMA near 0.7250 region, which if broken is likely to extend the corrective move further towards 0.7200 round figure mark support. Meanwhile on the upside, 0.7340-50 region seems to have emerged as immediate strong resistance above which the pair could be headed back towards August monthly high resistance near 0.7380 level.