The Australian and NZ dollars weakened against their major counterparts in the European session on Monday, as a surge in coronavirus cases across Europe triggered fears over another lockdown.

Authorities have imposed restrictions in various parts of Europe to contain outbreaks of infection. Parts of northern England and areas of Spain's capital are facing restrictions.

Oil prices fell, hurt by the possible return of Libyan production and as surging COVID-19 cases stoked demand worries.

The aussie fell to 6-day lows of 1.6272 against the euro and 0.9591 versus the loonie, from its early high of 1.6193 and a 4-day high of 0.9656, respectively.

Pulling away from its prior highs of 0.7324 against the greenback and 76.39 against the yen, the aussie slid to near a 2-week low of 0.7225 and a 1-1/2-month low of 75.37, respectively.

Versus the yen, the NZ currency hit near a 4-week low of 69.59, after rallying to 70.79 at 9:15 pm ET.

The kiwi eased off from its early highs of 0.6778 against the greenback, 1.7480 against the euro and 1.0772 against the aussie, reaching 4-day lows of 0.6675, 1.7614 and 1.0836, respectively.

The next possible support for the aussise is seen around 1.66 against the euro, 0.94 versus the loonie, 0.70 against the greenback and 74.00 against the yen. The kiwi is seen testing support around 0.64 against the greenback, 1.78 against the euro, 68.00 against the yen and 1.10 against the aussie.

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