AUD/CAD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +13 and the Canadian Dollar scores -9 — a gap of 22 points in favour of the Australian Dollar. The widest divergence is in interest rates, which favours the Australian Dollar. All else equal that gap is a fundamental tailwind for the Australian Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+21.5
Stronger side
AUD
Edge is
Holding steady
Scores
+13 vs -9
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus CAD.
| Factor | AUD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +31 | -33 | +63.8 |
| Growth | -41 | -20 | -21.3 |
| Positioning | +30 | +3 | +26.4 |
| Risk Mood | +24 | +15 | +9.8 |
| Commodities | +15 | +16 | -1.0 |
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