EUR/AUD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -37 and the Australian Dollar scores +24 — a gap of 60 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 Euro — though markets may already have priced much of it in.
Strength gap
-60.4
Stronger side
AUD
Edge is
Holding steady
Scores
-37 vs +24
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus AUD.
| Factor | EUR | AUD | Gap |
|---|---|---|---|
| Interest Rates | -51 | +65 | -116.6 |
| Growth | — | -32 | +31.8 |
| Positioning | -43 | +55 | -98.7 |
| Risk Mood | -0 | +53 | -52.9 |
| Commodities | — | -59 | +58.6 |
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