The Aussie slid to a 20-month low of $0.9511 at one stage on Wednesday, down more than 1 pct on the day. It was last at $0.9521 with its failure to sustain a rally early in the week leaving technicals looking very bearish.
Dealers say next targets are $0.9430 and $0.9388, the 2011 low point.
The New Zealand dollar fell to $0.7928, its weakest since September, before trimming losses to trade around $0.7965. Break of $0.7900 could see a move to $0.7800.
Much of the damage was done on the yen crosses, where investors rushed out of short positions in apparent disappointment at the Japanese government's latest stimulus proposals.
The Aussie slumped 2 percent to a three-month low around 94.20 yen, while the kiwi sinks to a two-month trough around 78.50 yen.
The Aussie hits a near 1-1/2-year trough versus the euro around A$1.3765 per euro while the kiwi slumps to around NZ$1.6515, its weakest in a year.
The Aussie matched a one-year low versus a currency basket of 73.50 while the kiwi hits 74.46 on a trade-weighted basis, its lowest of the year.
The Aussie was already under selling pressure after a disappointing reading of domestic economic growth on Wednesday added to speculation that the Reserve Bank of Australia will lower interest rates in the coming months.
The RBA will actually welcome the weakness in the Aussie since it will help lessen competitive pressure on much of Australian manufacturing while easing financial conditions.
Stock markets were generally weaker as Japanese shares resumed their recent retreat and US jobs data disappointed. Wall Street continues to fret about when or whether the Federal Reserve might begin to taper its bond buying.
Australian government bonds rise, tracking gains in US Treasuries. The three-year contract indicated up 0.040 points at 96.650, while the 10-year contract rises the same amount to 96.650.
New Zealand government bonds also gain in early trade, pushing yields 3 basis points lower across the curve.
Australian trade data are due at 0130 GMT and could show ongoing strength in commodity exports to China. The figures rarely move markets however.
<Center><b><i>Copyright Reuters, 2013</b></i><br></center>