USD/FJD Outlook:
The USD/FJD pair is likely to decrease, trading 1.5% below its 90-day average and near recent lows, as economic pressures weigh on the US dollar.
Key drivers:
• Rate gap: The Federal Reserve's recent interest rate decisions continue to support the USD, but lower interest levels in Fiji stabilize the FJD.
• Risk/commodities: Recent trends show oil prices under pressure, impacting currencies tied to oil trade, including the FJD.
• One macro factor: Ongoing global trade tensions are likely to impact Fiji's export performance, putting additional pressure on the FJD.
Range:
The USD/FJD is expected to drift within its recent stable range.
What could change it:
• Upside risk: A surprise increase in US economic data could bolster the USD.
• Downside risk: Any significant worsening in global trade conditions could further weaken the FJD.
