The Australian and NZ dollars fell against their major counterparts in the Asian session on Thursday, as Asian markets followed Wall Street lower, after the Fed warned of a slowdown in the pace of the economic recovery in the wake of the coronavirus pandemic.

The Fed kept its monetary policy unchanged, but highlighted the recent worsening of the economic data amid the ongoing crisis.

The central bank cautioned that the pace of the recovery in economic activity and employment has moderated in recent months.

The economy was still a long way from a complete recovery, which depends prominently on the course of the virus.

Data from the Australian Bureau of Statistics showed that Australia export prices rose 5.5 percent on quarter in the fourth quarter of 2020 - beating forecasts for a decline of 1.3 percent following the 5.1 percent drop in Q3.

Import prices sank 1.0 percent on quarter versus expectations for a fall of 2.4 percent after sinking 3.5 percent in the three months prior.

Data from Statistics New Zealand showed that New Zealand posted a merchandise trade surplus of NZ$17 million in December - following the NZ$252 million surplus in November.

Exports fell NZ$149 million or 2.7 percent on year to NZ$5.35 billion, while imports rose NZ$213 million or 4.2 percent to NZ$5.33 billion.

The aussie depreciated to a fresh 3-week low of 1.5867 against the euro, fresh 4-week low of 0.7621 against the greenback and a 1-week low of 0.9779 versus the loonie, down from its prior highs of 1.5789, 0.7666 and 0.9812, respectively. The aussie is seen finding support around 1.62 against the euro, 0.72 against the greenback and 0.96 versus the loonie.

The Australian currency hovered at more than a 3-week low of 79.49 against the yen, compared to Wednesday's close of 79.73. The aussie is likely to target support around the 76.00 mark.

The aussie reversed from an early high of 1.0711 against the kiwi, reaching as low as 1.0684. On the downside, 1.045 is possibly seen as its next support level.

Pulling away from its previous highs of 0.7162 against the greenback, 74.59 against the yen and 1.6896 against the euro, the kiwi weakened to an 8-day low of 0.7121, 1-week low of 74.29 and a 6-day low of 1.6975, respectively. The kiwi is poised to target support around 0.70 against the greenback, 72.00 against the yen and 1.72 against the euro.

Looking ahead, Eurozone economic confidence index for January will be released in the European session.

At 8.00 am ET, Destatis is scheduled to issue German preliminary consumer inflation for January.

In the New York session, Canada building permits for December, U.S. GDP data for the fourth quarter, weekly jobless claims for the week ended January 23, wholesale inventories, new home sales and advance goods trade balance for December will be published.