The Aussie slips to $1.0319, from $1.0377 in NY on Friday. It hit $1.0445 last week, the highest in nearly three months. It is testing key support at $1.0315, the 38.2 pct of the $1.0100/$1.0445 move.
A fall below Friday's $1.0363 low ends a six-day streak of higher daily lows and suggests the trend higher may be running out of steam.
NZ dollar falls through its 200-day moving average and last stands at $0.7949, against $0.7988 on Friday in NY.
Kiwi likely to consolidate, with support seen initially around $0.7950 ahead of stronger base at $0.7920, the July 18/19 low. Resistance seen at $0.8014, ahead of a key barrier at $0.8055, last week's high.
Euro regains some ground on profit-taking against the Antipodean currencies after recent hefty gains left them overstretched.
The euro claws back to A$1.1751 from a record low of A$1.1671 touched in offshore trade. Against the kiwi, it nudges up to NZ$1.5250 from an all-time trough of NZ$1.5104 hit over the weekend.
Fears Spain, the euro zone's fourth-largest economy, may seek a full-scale international bailout, could encourage larger profit-taking. Weak Asian bourses with Hong Kong & Korea skidding more than 2.0 pct weigh on commodity currencies.
In recent weeks, Aussie & kiwi have been key benefactors from desperate search for yield with investors piling into carry trades and borrowing at low rates in euros, Swiss francs and US dollars.
Reserve diversification from foreign sovereign funds and central banks has also helped. They have been big buyers of Australian government debt, one of the very few triple-A rated liquid assets left.
With investors turning more cautious about risk assets, yields on US Treasuries reach new depths with the 10-year UST at 1.4365 pct. Australian debt futures follow, with the three-year contract up 0.14 points to 97.900, and the 10-year contract 0.11 higher at 97.295.
Australia Producer Prices Index (PPI) rose slightly more than expected, showing an increase of 0.5 pct for the quarter against forecasts of 0.3 pct.
PPI data has little relation with the more influential consumer inflation figure due on Wednesday. Another tame CPI reading could take more steam out of the Aussie as it could raise speculation of another interest rate cut.
NZ's key event is the Reserve Bank of NZ's rate review on Thursday, which is expected to be a replay of recent statements -- rates on hold with a dovish tone about global risks and sluggish, uneven domestic activity.
Also important this week will be flash PMIs from China, the US and euro zone, along with US and UK GDP numbers.
NZ government bonds follow US Treasuries higher, with yields down as much as 7.5 bps.