AUD/JPY: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +13 and the Japanese Yen scores +44 — a gap of 31 points in favour of the Japanese Yen. The widest divergence is in growth, which favours the Japanese Yen. All else equal that gap is a fundamental tailwind for the Japanese Yen against the Australian Dollar — though markets may already have priced much of it in.
Strength gap
-30.7
Stronger side
JPY
Edge is
Widening
Scores
+13 vs +44
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus JPY.
| Factor | AUD | JPY | Gap |
|---|---|---|---|
| Interest Rates | +31 | +52 | -21.2 |
| Growth | -41 | +44 | -84.6 |
| Positioning | +30 | +82 | -52.5 |
| Risk Mood | +24 | -24 | +48.8 |
| Commodities | +15 | — | +15.3 |
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