AUD/USD: BNP Paribas remains bearish and targets 0.70 within 3 months

"We maintain our bearish outlook on the AUD until the RBA meeting tomorrow (02 August).

Our economists still expect the RBA to lower the interest rate by 0.25% (60% of this scenario is already built into the price), despite a second quarter that is a bit more consistent, highlighting last week's inflation.

Current net exposure to the AUD is rising and we believe that this does not reflect the risk of falling raw material prices, rising US interest rates and the possibility of a rate cut from the RBA.

We remain bearish and are targeting 0.70 within the next three months.