NZD/USD: Bullish run loses steam near 0.7350

The NZD bulls took a breather from the ongoing bullish momentum, now pushing NZD/USD slightly away from session tops reached just shy of the mid-point of 0.73 handle.

NZD/USD: upbeat China services PMI underpins

Currently, the NZD/USD pair advances +0.51% to 0.7329, extending the retreat from post-NFP highs scored at 0.7361. A better-than expected Chinese services PMI report pushed the NZD/USD pair higher on 0.73 handle, although the upside appears to lack follow-through amid directionless trading seen in the oil prices.

The Caixin/Markit services purchasing managers' index (PMI) rose to 52.1, up from 51.7 and against expectations of a 51.9 reading.

However, the Kiwi remains supported on the back of extended broad based US dollar correction. The USD index now drops -0.25% and flirts with session lows struck at 95.60 last minutes.

Attention now shifts towards Tuesday’s NZ GDT auction results, in absence of significant macro updates due today in wake of holidays in Canada and the US.

NZD/USD Levels to consider

To the upside, the next resistance is located at 0.7361 (post-NFP high), above which it could extend gains to at 0.7381 (multi-month tops). To the downside immediate support might be located at 0.7291 (5-DMA/ daily low) and from there to at 0.7269/66 (10 & 20-DMA).