SYDNEY/WELLINGTON: The Australian dollar hit an 11-month low against the US dollar and a 1-1/2-year trough versus the euro on Thursday after US Federal Reserve Chairman Ben Bernanke signalled he may trim asset purchases if the US economy continues to recover.
Chinese PMI due at 0145 GMT. A weak reading could spur more selling in the Antipodeans, as China is a key export market for both Australia and New Zealand.
The Aussie fell as low as $0.9662, its weakest since June last year and reversing a climb to $0.9828. It skidded 1.1 percent on Wednesday to last change hands at $0.9688 at 2201 GMT.
A slowing in the Fed's massive monetary stimulus programme could diminish demand for higher-yielding assets, including the Antipodean currencies.
The New Zealand dollar plumbed an 8-1/2-month trough of $0.8057, showing a sharp drop of 1.3 percent, weighed by a broad US dollar rally even as the Fed indicated that the bar to scaling down asset purchases remains high. Kiwi last traded at $0.8058.
The Aussie was 6.5 percent lower so far this month with a test of $0.9581, its 2012 low, in sight.
The Aussie and the kiwi also suffered against other currencies including the euro, which rallied to around A$1.3320 , its weakest since late 2011, and a three-month high around NZ$1.5960.
That pushed the Aussie to 74.9 versus a trade weighted currency basket, a level near an 11-month low hit this week, while the kiwi roughly matched a two-month low hit on Tuesday.
The Aussie and the kiwi have been pounded by the US dollar this month on a resurgent greenback amid signs of improving economic data which has stocked expectations of a tapering in the Fed's easing policy.
Some Fed policymakers have pointed to such a possibility, but minutes from the central bank's latest monetary policy meeting showed board members believe a slow down in asset buying would require further confidence in the economic outlook.
Most technical signs point to more Aussie weakness, but kiwi support holds around $0.8066, the 50 percent retracement of its June-April rally. A break below this level would push the kiwi towards $0.7920, a low hit in September.
Australian government bonds futures are seen tracking a sell-off in US Treasuries, with the three-year contract indicated down 0.070 points at 97.350, while the 10-year contract falls the same amount to 96.665.
New Zealand government bonds slide in early trade, pushing yields 6.5 basis points higher at the long end of the curve.
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