The New Zealand dollar (NZD) is currently under pressure as risk-averse trading conditions persist. Analysts note that this trend is likely to continue as investors are cautious ahead of the Reserve Bank of New Zealand's (RBNZ) interest rate decision, which is anticipated to influence NZD performance significantly. The correlation between NZD and AUD, driven by their geographic proximity and reliance on commodity markets, could further amplify fluctuations in the NZD/USD pairing, especially with the potential for new trade tariffs stemming from geopolitical developments, such as a potential Trump presidency.
Recently, the NZD to FJD exchange rate has been experiencing declines, recently reaching 14-day lows around 1.3479. This figure is near the three-month average and has remained relatively stable, trading within a narrow range of 3.4% from 1.3290 to 1.3742. Experts suggest that these fluctuations may indicate a consolidation phase for the NZD as it reacts to both local economic data and external market factors.
On the other hand, the Fijian dollar (FJD) is expected to benefit from promising developments in its tourism sector. Forecasts indicate that by the end of 2024, Fiji could welcome up to a million tourists annually, significantly bolstering its economy. The expected growth in tourism, projected to create a $FJ3 billion industry, will likely necessitate substantial investments in infrastructure and hospitality. This positive economic outlook for Fiji may provide the FJD with underlying support against the NZD.
Overall, currency analysts suggest that while the NZD may struggle due to external pressures and an uncertain economic outlook, the FJD is positioned to gain strength from substantial upcoming developments in tourism. As a result, market participants should monitor these evolving factors closely as they may impact international transactions between the NZD and FJD in the coming months.