GBP/AUD: the macro gap
On the Macro Currency Strength Meter, the British Pound scores -18 and the Australian Dollar scores +20 — a gap of 38 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 British Pound — though markets may already have priced much of it in.
Strength gap
-37.6
Stronger side
AUD
Edge is
Widening
Scores
-18 vs +20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is GBP minus AUD.
| Factor | GBP | AUD | Gap |
|---|---|---|---|
| Interest Rates | -33 | +65 | -98.5 |
| Growth | — | -37 | +37.4 |
| Positioning | -12 | +23 | -35.1 |
| Risk Mood | +6 | +32 | -25.2 |
| Commodities | — | -10 | +9.9 |
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