Kuznetsova beat her Danish opponent 6-2 2-6 7-5 to book a quarter-final showdown with top seed and defending champion Victoria Azarenka in Melbourne.
But former world No1 Wozniacki was intent on remaining upbeat after the fourth-round defeat against the unseeded Russian.
“I’m encouraged about the way I played and the way I came out of some situations and the way I was playing the points,” said Wozniacki.
“Obviously I would have loved to have won today, but it didn’t happen.
“There is still a long year in front of me. There are still a few things I can work on and it can be better.
“But at the same time, there are so many things I think I did well at this tournament, as well.”
Kuznetsova, 27, is through to the last eight at Melbourne Park for the third time in 12 appearances.
And the former US and French Open champion, currently the world No75, was understandably thrilled with the victory.
“It’s amazing,” she said. “It’s my best result. I have been working hard, but still I didn’t have much time to do what I like to do with my necessary condition and everything else.
“It’s a very good result for first tournament and I don’t remember when I was last in the quarters.”