NZD/CAD: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +14 and the Canadian Dollar scores -20 — a gap of 33 points in favour of the New Zealand Dollar. The widest divergence is in interest rates, which favours the New Zealand 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
+33.4
Stronger side
NZD
Edge is
Narrowing
Scores
+14 vs -20
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 | +34 | -25 | +58.4 |
| Growth | — | -14 | +13.5 |
| Positioning | +6 | -44 | +50.9 |
| Risk Mood | -19 | -12 | -7.7 |
| Commodities | +16 | +7 | +9.0 |
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