The Australian and New Zealand dollars slipped on Monday as concerns about a possible second wave of coronavirus infections in China hurt risk sentiment and the economic outlook for a major export market.
Data on Chinese retail sales and industrial output also missed expectations, albeit modestly, adding to the selling pressure.
The Aussie eased 0.4% to $0.6838 <AUD=D3> and further away from last week's 11-month top at $0.7069. It has chart support at $0.6800 and the 200-day moving average at $0.6665.
The kiwi dollar dipped 0.3% to $0.6427 <NZD=D3>, again off the recent five-month peak at $0.6585. Support lies at $0.6395 and $0.6321.
After weeks with almost no new coronavirus infections, Beijing has recorded dozens of new cases in recent days, all linked to a major wholesale food market, raising concerns about a resurgence of the disease.
China is Australia's single biggest export market and a major buyer of its commodities. So, any risk of a renewed lockdown there is considered negative for the Aussie.
The threat was all the greater as strong Chinese demand and supply problems in Brazil recently boosted prices for iron ore, Australia's biggest export earner, above $100 a tonne in a huge windfall for company profits and tax receipts.
"As economies reopen, an increase in infection rates is to be expected, the question is whether detecting measures will be efficient enough to allow for localised containment measures without having to shut the whole economy again," said Rodrigo Catril, senior FX strategist at NAB.
"China could be the template to watch here."
Australia and New Zealand have been more successful than most in curbing the virus, allowing their domestic economies to almost fully re-open.
The damage done by the lockdown was evident in figures for international visitor arrivals for April, which showed record falls nearing 100% as borders were closed.
Figures for Australian employment due out later this week are forecast to show a steep drop of 125,000 in jobs, with the unemployment rate rising to 7.0%.
Yet preliminary data on retail sales for May should show a sharp rebound, after a record decline in April, as many sectors began to re-open.
New Zealand will release data on gross domestic product for the first quarter which is forecast to show a contraction of around 0.9% from the previous quarter, ahead of a far steeper decline in the current quarter.
(Editing by Uttaresh.V)
