The Australian and New Zealand dollars retreated from recent peaks on Monday as doubts about a Middle East peace deal eroded demand for the risk-sensitive currencies, reports Reuters.

The Aussie fell as low as $0.7115 before trimming losses to be down 0.2 per cent at $0.7150.

“AUD/USD will receive a short-term bump up once the wars end is in sight. But a weaker global growth outlook and U.S. exceptionalism will still pull AUD/USD down over the next year,” said Kristina Clifton, senior currency strategist at CBA.

The Australian calendar is light this week, so the Aussie’s movements are likely to be dictated by headlines from the Middle East.

The kiwi dollar was similarly down at $0.5849 before paring losses to be off 0.1pc at $0.5875.

The five-week top of $0.5929 from Friday is acting as near-term resistance, while support is around $0.5870.