The NZD to FJD exchange rate has a bearish bias, with the NZD struggling despite better-than-expected GDP figures.
The interest rate differential is shifting as the Reserve Bank of New Zealand (RBNZ) is expected to cut rates, which would negatively impact the NZD. Economic sentiment is weighed down by global uncertainties, impacting trade figures. Meanwhile, Fiji's economy may face headwinds from US tariffs affecting exports, but the Fijian dollar (FJD) remains stable due to the Reserve Bank of Fiji's supportive monetary policy.
The near-term trading range for the NZD to FJD is likely to remain stable within recent levels, trading marginally above its three-month average.
Upside risks could arise if New Zealand's export figures show unexpected gains, providing support to the NZD. Conversely, if global economic conditions worsen significantly or if RBNZ cuts rates sooner than expected, the NZD could weaken further against the FJD.