The Aussie was up 0.1% at 0313 GMT at $0.6715, but not far from a 10-1/2 year trough of $0.6670 touched earlier in the week. The kiwi dollar eased 0.1% to $0.6263 to stay within spitting distance of this week's four-year low of $0.6204. Against the Japanese yen, the Aussie and the kiwi held near one-month lows. Risk sentiment soured overnight after data showed hiring by US private employers had slowed in September, the latest indicator that the Sino-US trade dispute is hurting the world's largest economy.
Yields on two- and three-year Australian bonds slipped to around 60 basis points. Those on two-year New Zealand bonds slipped to nearly 73 basis points, the lowest ever. Wednesday's data came on the heels of a survey on Tuesday showing manufacturing activity in the world's largest economy tumbled to a more than 10-year low in September. The weak data "has meant US equities have been underperforming and AU-US rate differentials have actually moved modestly in favour of the AUD," said Tom Nash, Sydney-based rates and forex strategist at HSBC.