EUR/AUD: the macro gap
On the Macro Currency Strength Meter, the Euro scores -49 and the Australian Dollar scores +5 — a gap of 54 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 Euro — though markets may already have priced much of it in.
Strength gap
-54.0
Stronger side
AUD
Edge is
Holding steady
Scores
-49 vs +5
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is EUR minus AUD.
| Factor | EUR | AUD | Gap |
|---|---|---|---|
| Interest Rates | -72 | +28 | -100.1 |
| Growth | — | -44 | +43.6 |
| Positioning | -50 | +52 | -102.1 |
| Risk Mood | +0 | -19 | +19.2 |
| Commodities | — | -12 | +12.2 |
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