AUD/USD: the macro gap
On the Macro Currency Strength Meter, the Australian Dollar scores +18 and the US Dollar scores +4 — a gap of 14 points in favour of the Australian Dollar. The widest divergence is in risk mood, 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
+13.7
Stronger side
AUD
Edge is
Holding steady
Scores
+18 vs +4
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 | +31 | +2 | +28.2 |
| Growth | -39 | +4 | -43.0 |
| Positioning | +49 | +31 | +18.5 |
| Risk Mood | +44 | -26 | +70.2 |
| Commodities | +1 | — | +1.4 |
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