GBP/AUD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -7 and the Australian Dollar scores +24 — a gap of 31 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 British Pound — though markets may already have priced much of it in.
Strength gap
-30.8
Stronger side
AUD
Edge is
Widening
Scores
-7 vs +24
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 | -35 | +65 | -100.0 |
| Growth | — | -32 | +31.8 |
| Positioning | +20 | +55 | -35.2 |
| Risk Mood | +11 | +53 | -42.3 |
| Commodities | — | -59 | +58.6 |
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