EUR/AUD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -39 and the Australian Dollar scores +13 — a gap of 52 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
-51.7
Stronger side
AUD
Edge is
Holding steady
Scores
-39 vs +13
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 | -66 | +31 | -97.0 |
| Growth | — | -41 | +40.9 |
| Positioning | -26 | +30 | -56.1 |
| Risk Mood | -0 | +24 | -24.4 |
| Commodities | — | +15 | -15.3 |
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