The currencies also declined after stocks in the U.S. fell on the worst contraction in manufacturing since 1982 and forecasts that the sagging economy will reduce profits. About 1 billion shares changed hands on the floor of the New York Stock Exchange, the slowest trading day since August. The S&P 500 lost 2.45 points, or 0.3 percent, to 966.3.
``For the Aussie to continue to recover the ground that was lost, particularly in the last couple of weeks, we would need to see stocks trading higher,'' said Robert Rennie, chief currency strategist in Sydney at Westpac Banking Corp.
New Zealand's currency also fell as the nation's commodity export price index slumped to an 18-month low in October led by beef, aluminum and wool, according to ANZ National Bank Ltd. Exports make up 30 percent of the New Zealand economy.
Australian government bonds advanced. The yield on the benchmark 1-year note dropped 39 basis points to 3.785 percent, according to data compiled by Bloomberg. The yield on 90-day bank bill futures fell to 4.48 percent from 4.95 yesterday.
New Zealand's two-year swap rate, a fixed payment made to receive floating rates, declined to 6.31 percent today from 6.34 yesterday.
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