The Australian and NZ dollars fell against their major counterparts in the Asian session on Friday amid rising risk aversion, as uncertainty about new U.S. fiscal stimulus and the resurgence in coronavirus cases in Europe as well as the U.S. stoked concerns about a global economic recovery.

An unexpected increase in U.S. weekly jobless claims also weighed on the markets.

Rising virus cases in regions around the world could lead governments to reimpose lockdowns to contain the outbreak.

U.S. Senate Majority Leader Mitch McConnell rejected the push for higher coronavirus stimulus deal, hours after President Trump told FOX Business he was willing to raise his spending offer above the White House's current $1.8 trillion proposal.

On the Brexit front, U.K. chief Brexit negotiator David Frost said on Thursday he was "surprised" and "disappointed" by the European Union's position during negotiations in Brussels.

EU chief negotiator Michel Barnier told reporters that there were "prospects" of a deal but he could not say that "we'll necessarily get a deal."

Survey from BusinessNZ showed that New Zealand manufacturing sector continued to expand in September, and at a faster rate, with a Purchasing Managers Index score of 54.0.

That's up from 51.0 in August and it moves further above the boom-or-bust line of 50 that separates expansion from contraction.

The aussie weakened to 0.7070 against the greenback and 74.39 against the yen, off its early highs of 0.7098 and 74.83, respectively. The next possible support for the aussie is seen around 0.68 against the greenback and 72.00 against the yen.

The aussie reversed from its prior highs of 1.6491 against the euro, 0.9382 against the loonie and 1.0754 against the kiwi and edged down to 1.6551, 0.9358 and 1.0729, respectively. The aussie is poised to challenge support around 1.70 against the euro, 0.92 against the loonie and 1.06 against the kiwi.

The kiwi dropped to 0.6587 against the greenback, 69.31 against the yen and 1.7766 against the euro, after rising to 0.6606, 69.63 and 1.7723, respectively in early deals. The kiwi may locate support around 0.63 against the greenback, 66.00 against the yen and 1.82 against the euro.

Looking ahead, Eurozone final consumer inflation for September and trade data for August are due in the European session.

In the New York session, U.S. business inventories data for August, retail sales and industrial production for September and University of Michigan's preliminary consumer sentiment index for October are set for release.