The Australian and New Zealand dollars dropped against their Japanese and U.S. counterparts against fears that the global economy woes may worsen.

The Aussie dropped against 16 of the major currencies after a report confirmed that GDP growth stalled in France and bookings for U.S. durable goods declined.

"Every day we're getting new pieces of a puzzle, and it's very difficult to trade," said Kurt Magnus, executive director of currency sales in Sydney at Nomura Holdings Inc., Japan's biggest brokerage. There needs to be more positivity before the Australian currency can go back to parity with the dollar, Magnus added.

The Australian dollar fell to 75.45 yen as of 4 p.m. in Sydney down from 76.15 yen in New York yesterday. It also weakened to 98.54 U.S. cents from 99.14 cents, after dropping below parity on September 22. New Zealand's currency slid to 60.04 yen from 60.57 yen, and declined to 78.41 U.S. cents from 78.85 cents.

Crude oil fell as much as 2.1 percent in afterhours trading on the New York Mercantile Exchange and copper on the London Metal Exchange dipped as much as 4.5 percent.

"Nerves are raw, patience is low, and room for political maneuvering is narrow," Greg Gibbs, a currency strategist at Royal Bank of Scotland Group Plc in Sydney, wrote in a note to clients. "We still see a high risk that the Australian dollar makes new lows before the year is out."

The Aussie is estimated to slide to 93 U.S. cents by December to recover to 95 in the first quarter of next year and $1.10 in the second quarter.

There is some hope though as Australia's long-term trade links with its Asian neighbors and demand for its commodities will strengthen the currency next year, according to RBS. Australia is set to be a major exporter of energy sources like natural gas and coal projects which will drive investment for several years.

In contrast to 2008, when the Aussie dropped 20 per cent, "many projects are under construction and are likely to be much more resilient to fears of a European-led banking and economic collapse," Gibbs wrote. "The relative growth outlook in Australia and Asia remains much stronger than major economies. The policy moves in the major economies will continue over the long term to undermine their currency values."