AUD/USD Gap +26.4 Updated 16 Aug, 20:20 UTC

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.

AUD/USD STRENGTH GAP1Y · BASE MINUS QUOTE0+26+52-47+26 AND RISING
AUD minus USD, composite macro score over the past year. Above zero, the AUD side carries the edge; below, the USD.
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.

FactorAUDUSDGap
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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