At least seven people remain unaccounted for in flames, New South Wales Rural Fire Commissioner Shane Fitzimons told a news conference on Saturday.
One of the dead was found inside a vehicle and the other died in hospital while being treated for severe burns.
Fitzsimons stated that preliminary reports suggested that at least 100 homes had been destroyed by fire.
Images posted on social media show ominous bright orange skies and dense smoke fluttering across roads and cities across the region,
"(With) dry winds in the already dry landscape, it's likely we see fires rising at the level of their warning, "Fitzsimons said Saturday.
As of Saturday morning, there were about 70 fires in the state, with 39 burned out of control.
Alex Beckton, a resident of Old Bar on the NSW Coast, told CNN he was evacuating his family at a local surf club early Saturday with ed as watered their home to try to preserve it.
"Last night, you can do it see the sky was red and orange, amber," he said. "I think many people are just because they have to watch all night."
Becketon said some other members of the city had already left after emergency texts came from authorities calling for an evacuation.
She warned that some explosions create their own meteorological conditions and that fiery clouds – which can produce lightning without rain – are unfolding.
"These (fiery clouds) are extremely dangerous. Don't get caught out in the open, "says NSW RFS.
Fitzsimmons said on Friday that the fire department had received reports that several communities had been hit by the blasts, including reports of injuries to residents and damage to buildings.
"" High concentrations of fire and extreme variability and extreme fire behavior "were driven by" drought-prone landscapes "and hot, dry, windy conditions," he said.
Winds are set to be "relentless" all night long, Fitzsimmons
On Twitter Friday, Rob Rogers, executive director of operations at the NSW Rural Fire Service, described the fires as "unprecedented" and asked residents to "
About 50 fires are also aflame in neighboring Queensland. Residents in several areas there have been told to evacuate as emergency-level fires threaten housing and property.
Queensland and New South Wales are prone to fires in spring and early summer and this year's flames follow Australia's hottest hot summer, bringing worsening drought, fires and very low rainfall.