NZD/USD: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +20 and the US Dollar scores +6 — a gap of 14 points in favour of the New Zealand Dollar. The widest divergence is in risk mood, which favours the New Zealand Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the US Dollar — though markets may already have priced much of it in.
Strength gap
+14.0
Stronger side
NZD
Edge is
Holding steady
Scores
+20 vs +6
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus USD.
| Factor | NZD | USD | Gap |
|---|---|---|---|
| Interest Rates | +27 | +2 | +24.8 |
| Growth | — | +17 | -16.8 |
| Positioning | -5 | +15 | -20.3 |
| Risk Mood | +24 | -15 | +39.0 |
| Commodities | +33 | — | +33.3 |
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