NZD/CAD: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores -4 and the Canadian Dollar scores -16 — a gap of 12 points in favour of the New Zealand Dollar. The widest divergence is in interest rates, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+11.8
Stronger side
NZD
Edge is
Holding steady
Scores
-4 vs -16
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus CAD.
| Factor | NZD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +10 | -25 | +35.5 |
| Growth | — | -5 | +4.9 |
| Positioning | -42 | -26 | -15.4 |
| Risk Mood | +53 | +32 | +21.2 |
| Commodities | -39 | -44 | +5.3 |
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