USD/FJD Outlook:
The USD/FJD rate is slightly weaker, but likely to move sideways as it trades below its recent average and sits near recent lows. Current trading conditions are stable, despite recent fluctuations.
Key drivers:
• Rate gap: The Federal Reserve's interest rate decisions may create upward pressure on the USD, influencing its strength against the FJD.
• Risk/commodities: Oil prices are currently stable, which typically supports the USD as a safe haven in times of market uncertainty.
• One macro factor: Fiji's anticipated economic growth of 3% in 2026, alongside very low inflation, should help stabilize the FJD.
Range:
Expect the USD/FJD to hold within its recent range, as there is limited direction in either currency.
What could change it:
• Upside risk: A stronger-than-expected US economic report could boost the USD against the FJD.
• Downside risk: If Fiji's economic outlook shows significant improvement or US data indicates weakness, it may weaken the USD further.