SYDNEY: The Australian and New Zealand dollars were back on the defensive on Monday as the rapid rise of coronavirus cases forced more restrictions in Europe and dimmed the outlook for global growth.

The Aussie fell to $0.7116, having failed to sustain a brief rally to $0.7224 last week. Support lies at $0.7090 ahead of the low for the year at $0.6994.

The kiwi dollar lapsed to $0.6728, leaving behind last week’s top of $0.6834. Attention is now on its trough for the year at $0.6702.

The Netherlands’ decision to lockdown for Christmas sent a shudder through markets, which had thought drastic measures were not needed given progress on vaccinations.