AUD/NZD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +20 and the New Zealand Dollar scores +6 — a gap of 13 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 New Zealand Dollar — though markets may already have priced much of it in.
Strength gap
+13.3
Stronger side
AUD
Edge is
Narrowing
Scores
+20 vs +6
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus NZD.
| Factor | AUD | NZD | Gap |
|---|---|---|---|
| Interest Rates | +65 | +11 | +54.5 |
| Growth | -37 | — | -37.4 |
| Positioning | +23 | -26 | +48.4 |
| Risk Mood | +32 | +32 | +0.0 |
| Commodities | -10 | +16 | -25.9 |
Advertisement