AUD/CAD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +5 and the Canadian Dollar scores -20 — a gap of 25 points in favour of the Australian Dollar. The widest divergence is in positioning, which favours the Australian Dollar. All else equal that gap is a fundamental tailwind for the Australian Dollar against the Canadian Dollar — though markets may already have priced much of it in.
Strength gap
+25.1
Stronger side
AUD
Edge is
Narrowing
Scores
+5 vs -20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is AUD minus CAD.
| Factor | AUD | CAD | Gap |
|---|---|---|---|
| Interest Rates | +28 | -25 | +52.6 |
| Growth | -44 | -14 | -30.1 |
| Positioning | +52 | -44 | +96.9 |
| Risk Mood | -19 | -12 | -7.7 |
| Commodities | -12 | +7 | -19.3 |
Advertisement