The Australian and NZ dollars fell against their major counterparts in the Asian session on Monday, as possibility of aggressive interest rate hikes by the U.S. Federal Reserve and a tightening of COVID-19 restrictions in China's capital Beijing triggered uncertainty about the global growth outlook.

Beijing had tightened restrictions amid a spike in infections, which includes suspending dining-in services at restaurants and requiring to show a negative Covid-19 test result to enter public venues.

Investors focused on the Fed's monetary policy meeting due this week, which is expected to deliver a 50 basis point rate hike to tame inflation.

In addition, the European Union is preparing a new raft of sanctions against Russia, which could include a ban on Russian oil imports.

The Reserve Bank of Australia is expected to raise its cash rate by 15 basis points to 25 basis points at its meeting on Tuesday.

The aussie declined to 0.7032 against the greenback, its weakest level since February 1. Against the yen, it reached a 4-day low of 91.52. The aussie is seen challenging support around 0.68 against the greenback and 90.00 against the yen.

The aussie was down against the euro and the loonie, hitting a 1-week low of 1.4961 and near a 3-month low of 0.9049, respectively. The aussie is likely to challenge support around 1.53 against the euro and 0.88 against the loonie.

The kiwi weakened to nearly a 2-year low of 0.6422 against the greenback, while touching a 5-day low of 83.52 against the yen. The next possible support for the kiwi is seen around 0.63 against the greenback and 80.00 against the yen.

Against the euro, the kiwi broke the key 1.64 level and fell to near a 2-month low of 1.6403. On the downside, 1.66 is likely seen as its next support level.

The kiwi retraced its early gains against the aussie, reaching as low as 1.0967. Next key support for the NZ currency is seen around the 1.11 level.

Looking ahead, PMI reports from major European economies are due in the European session.

U.S. ISM manufacturing PMI for April and construction spending for March are set for release in the New York session.

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