The Australian dollar is seen to receive a downbeat blow with the expected slowdown in the manufacturing output of China.

Analysts are concerned that if China's production and manufacturing output fell for a third consecutive month, this will strongly have an impact on the Aussie dollar.

"The rumor is that the Chinese PMI number is going to be worse," said

Tim Kelleher, vice-president of institutional banking and markets at Commonwealth Bank of Australia in Auckland, the nation's largest lender, said in a Bloomberg report that this scenario would force investors to put a larger wager and sell the Aussie dollar's strength.

Australia's currency fell to 89.96 U.S. cents as of 12:29 p.m. in Sydney from 90.05 cents in New York yesterday, after rising to 90.69 cents on July 27, the highest since May 10. It dropped 0.5 percent to 77.79 yen. The currency has gained 7 percent against the greenback this month.

New Zealand's dollar declined 0.5 percent to 72.05 cents, set for an 0.9 percent loss this week. The currency fell 0.8 percent to 62.31 yen.

New Zealand's dollar extended a weekly loss after its Reserve Bank said yesterday deteriorating growth will slow the pace of interest-rate increases.