NZD/CAD: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +6 and the Canadian Dollar scores -4 — a gap of 11 points in favour of the New Zealand Dollar. The widest divergence is in positioning, which favours the Canadian Dollar. All else equal that gap is a fundamental tailwind for the New Zealand Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+10.7
Stronger side
NZD
Edge is
Holding steady
Scores
+6 vs -4
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus CAD.
| Factor | NZD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +11 | -24 | +35.0 |
| Growth | — | -28 | +27.8 |
| Positioning | -26 | +30 | -55.6 |
| Risk Mood | +32 | +19 | +12.6 |
| Commodities | +16 | -1 | +17.1 |
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