USD/FJD Outlook:
The USD/FJD rate is likely to decrease as the exchange rate is currently below its recent average and near recent lows. Factors influencing this trend include a potential slowdown in U.S. economic indicators that could weaken the greenback.
Key drivers:
- Rate gap: The Federal Reserve is expected to maintain its cautious approach on interest rate hikes, while the Reserve Bank of Fiji keeps its rate low to support economic activity.
- Risk/commodities: Recent geopolitical tensions have kept the USD strong, but uncertainty in global trade may impact Fiji's export performance, pressuring the FJD.
- One macro factor: Fiji's projected economic growth is expected to slow, which could weaken the FJD in comparison to the USD.
Range:
The USD/FJD is likely to drift within its recent stable range, showing limited volatility.
What could change it:
- Upside risk: A stronger-than-expected U.S. economic report could bolster demand for the USD.
- Downside risk: Continued global trade tensions could further weaken the FJD against the USD.
