Outlook darkens for the Australian dollar

Economists at ABN Amro say weak business investment spending and slower China economic growth led them to lower AUD/USD forecasts and they've abandoned 2016 RBA hike forecasts.

They now see AUD/USD calling to 0.6800 this year form a previous projection of 0.7000. In 2016, they see the Australian dollar falling to 0.6000 from 0.6400.

ABN Amro analysts also note that a November rate cut isn't fully priced into the market and say the RBA will stay lower for longer.

"We now think that the RBA is likely to keep monetary policy loose for the rest of 2016, compared to our previous expectations of 50bp rate hike in the second half of 2016," they write in a note today.

New Zealand dollar headed lower

They similarly expect the RBNZ to cut rates in December and keep rates lower for 2016. They now see NZD/USD falling to 0.60 from 0.63 this year and 0.55 from 0.58 next year.