Bias: The USD/FJD pair is currently range-bound, trading near the 90-day average and positioned in the middle of the 3-month range.
Key drivers:
- Rate gap: The Federal Reserve's potential for rate cuts may weigh on the USD's strength compared to the stable stance of the Reserve Bank of Fiji.
- Risk/commodities: Recent volatility in oil prices could influence overall risk appetite, potentially affecting the USD's standing in international markets.
- Economic growth: Fiji's revised economic growth forecast suggests positive momentum, which can support the FJD against the USD.
Range: The USD/FJD is likely to remain steady, with movement confined to its recent 3-month range.
What could change it:
- Upside risk: Strengthening US labor data could revive confidence in the USD.
- Downside risk: Increased geopolitical tensions could negatively impact the USD, especially if they escalate.
