NZD/JPY: the macro gap
On the Macro Currency Strength Meter, the New Zealand Dollar scores +26 and the Japanese Yen scores +20 — a gap of 6 points in favour of the New Zealand Dollar. The widest divergence is in risk mood, which favours the New Zealand Dollar. With both currencies scoring similarly, the fundamental case here is broadly balanced.
Strength gap
+5.5
Stronger side
NZD
Edge is
Narrowing
Scores
+26 vs +20
Factor by factor
Positive is stronger relative to the other majors, not in absolute terms. The gap column is NZD minus JPY.
| Factor | NZD | JPY | Gap |
|---|---|---|---|
| Interest Rates | +26 | +52 | -25.2 |
| Growth | — | +49 | -49.0 |
| Positioning | +26 | -15 | +41.1 |
| Risk Mood | +35 | -35 | +69.2 |
| Commodities | +14 | — | +14.1 |
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