GBP/AUD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -28 and the Australian Dollar scores +13 — a gap of 41 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 British Pound — though markets may already have priced much of it in.
Strength gap
-40.8
Stronger side
AUD
Edge is
Widening
Scores
-28 vs +13
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus AUD.
| Factor | GBP | AUD | Gap |
|---|---|---|---|
| Interest Rates | -31 | +31 | -61.8 |
| Growth | — | -41 | +40.9 |
| Positioning | -48 | +30 | -77.1 |
| Risk Mood | +5 | +24 | -19.5 |
| Commodities | — | +15 | -15.3 |
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