AUD/CAD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +24 and the Canadian Dollar scores -16 — a gap of 39 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
+39.2
Stronger side
AUD
Edge is
Holding steady
Scores
+24 vs -16
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 | +65 | -25 | +90.6 |
| Growth | -32 | -5 | -26.9 |
| Positioning | +55 | -26 | +81.5 |
| Risk Mood | +53 | +32 | +21.2 |
| Commodities | -59 | -44 | -14.2 |
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