AUD/NZD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +24 and the New Zealand Dollar scores -4 — a gap of 27 points in favour of the Australian Dollar. The widest divergence is in positioning, which favours the Australian Dollar. All else equal that gap is a fundamental tailwind for the Australian Dollar against the New Zealand Dollar — though markets may already have priced much of it in.
Strength gap
+27.4
Stronger side
AUD
Edge is
Holding steady
Scores
+24 vs -4
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus NZD.
| Factor | AUD | NZD | Gap |
|---|---|---|---|
| Interest Rates | +65 | +10 | +55.1 |
| Growth | -32 | — | -31.8 |
| Positioning | +55 | -42 | +96.9 |
| Risk Mood | +53 | +53 | +0.0 |
| Commodities | -59 | -39 | -19.5 |
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