SYDNEY: The Australian and New Zealand dollars weakened on Tuesday after cautious investors cut down on risk amid concerns over rising Covid-19 cases and as the greenback strengthened on growing bets of higher US interest rates.

The Aussie dollar weakened 0.1% to $0.7557, falling for a second straight session. The unit dropped as deep as $0.7552 earlier in the day, a level not seen since June 23.

The New Zealand dollar was off 0.1% at $0.7032. Across the Tasman Sea, the New Zealand government, which halted its "travel bubble" with Australia on the weekend, on Tuesday said it will resume quarantine-free travel with parts of the country.

Australian government bond futures gained as well, with the three-year bond contract up 2 ticks at 99.54. The 10-year contract rose 6 ticks to 98.4650.