NZD/CAD: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +20 and the Canadian Dollar scores -9 — a gap of 28 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
+28.2
Stronger side
NZD
Edge is
Holding steady
Scores
+20 vs -9
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 | +27 | -33 | +60.0 |
| Growth | — | -20 | +19.6 |
| Positioning | -5 | +3 | -8.6 |
| Risk Mood | +24 | +15 | +9.8 |
| Commodities | +33 | +16 | +17.0 |
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