By Sue Chang SAN FRANCISCO (MarketWatch) -- The U.S. dollar's fourth-quarter outlook against key rivals is now more upbeat as a deterioration in the global growth outlook is likely to prompt many central banks to ease monetary policy, Bank of America Merrill Lynch strategists said in a report Wednesday. The strategists lowered the euro/dollar EURUSD +0.12% pair to weaken more quickly and trade at $1.30 due to the ongoing eurozone crisis. The greenback is also expected to fare better than expected against the Canadian dollar USDCAD +0.52% , buying 1.07 Canadian dollars. Most of the negative factors affecting the loonie are external, they noted. The Australian currency AUDUSD -0.49% was likewise revised down to buy 95 U.S. cents versus $1.02 earlier. However, the Japanese yen is projected to remain firm against the U.S. dollar USDJPY -0.36% at 75 yen and the strategists also kept the forecast for the British pound/dollar GBPUSD -0.07% pair unchanged at $1.51 while the dollar is expected to remain soft against the Chinese currency at 6.30 yuan.

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