AUD/USD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +20 and the US Dollar scores +2 — a gap of 18 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 US Dollar — though markets may already have priced much of it in.
Strength gap
+17.8
Stronger side
AUD
Edge is
Holding steady
Scores
+20 vs +2
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus USD.
| Factor | AUD | USD | Gap |
|---|---|---|---|
| Interest Rates | +65 | -28 | +93.1 |
| Growth | -37 | +30 | -67.1 |
| Positioning | +23 | +35 | -12.1 |
| Risk Mood | +32 | -19 | +50.4 |
| Commodities | -10 | — | -9.9 |
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