AUD/USD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +24 and the US Dollar scores -3 — a gap of 26 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 US Dollar — though markets may already have priced much of it in.
Strength gap
+26.4
Stronger side
AUD
Edge is
Widening
Scores
+24 vs -3
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus USD.
| Factor | AUD | USD | Gap |
|---|---|---|---|
| Interest Rates | +65 | -29 | +94.4 |
| Growth | -32 | +15 | -46.6 |
| Positioning | +55 | +40 | +15.2 |
| Risk Mood | +53 | -32 | +84.6 |
| Commodities | -59 | — | -58.6 |
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