NZ annual budget due at 0200GMT with expectations the government will lift its forecast of economic growth and budget surpluses from 2014/15.
The Aussie struggling at $0.9896, having hit a fresh 11-month low of $0.9852 overnight. Charts show the recent sharp decline seen as overdone.
Immediate support seen at the overnight low, then $0.9820, with resistance at $0.9940.
The New Zealand dollar off two-month lows at $0.8240 from $0.8200 late on Wednesday.
Support seen at $0.8175, the overnight trough, with resistance initially at $0.8260 and the 200-day moving average at $0.8287.
The euro declines to its lowest level against the dollar in six weeks on an unexpectedly large contraction of the euro zone economy, raising expectations for more monetary easing by the European Central Bank.
Data showed Germany's economy crept back into growth at the start of the year, but not by enough to stop the overall euro zone economy from contracting for a sixth straight quarter. France, meanwhile, slid into recession.
The dollar again rose to a 4-1/2-year high against the yen, although trimmed its gains after data showed manufacturing activity in New York state contracted unexpectedly in May.
US producer prices fell the most in three years in April, pointing to weak inflation pressures that should give the Fed latitude to keep monetary policy accommodative.
The Antipodean currencies bounce off multi-month lows against the euro, which falls to A$1.2976 from a high of A$1.0384. Against the kiwi, it bottoms at NZ$1.5591 from NZ$1.5769.
Both Aussie and kiwi dollars still within reach of recent five-year highs.
Softer metals and gold prices weigh on Antipodeans. Biggest export commodity iron ore down $1.70 to $126.40 a tonne.
New Zealand dairy giant Fonterra's latest auction shows a 2.1 percent dip in prices, the second consecutive fall, while volumes lift. But prices still up a whopping 85 percent over the past 12 months.