NZD/JPY: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +20 and the Japanese Yen scores +44 — a gap of 24 points in favour of the Japanese Yen. The widest divergence is in positioning, which favours the Japanese Yen. All else equal that gap is a fundamental tailwind for the Japanese Yen against the New Zealand Dollar — though markets may already have priced much of it in.
Strength gap
-24.0
Stronger side
JPY
Edge is
Widening
Scores
+20 vs +44
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus JPY.
| Factor | NZD | JPY | Gap |
|---|---|---|---|
| Interest Rates | +27 | +52 | -25.0 |
| Growth | — | +44 | -43.7 |
| Positioning | -5 | +82 | -87.5 |
| Risk Mood | +24 | -24 | +48.8 |
| Commodities | +33 | — | +33.3 |
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