NZD/FJD Outlook:
Slightly positive, but likely to move sideways as the rate is above its recent average but lacks a clear current driver.
Key drivers:
• Rate gap: The Reserve Bank of New Zealand is considering interest rate cuts to stimulate the economy, while the Reserve Bank of Fiji maintains low rates to support economic activity.
• Risk/commodities: Dairy prices have remained high, bolstering New Zealand's export income and supporting the NZD's position.
• One macro factor: Ongoing U.S.-China trade tensions create uncertainty that could affect both the NZD and FJD.
Range:
Expect the NZD/FJD to hold steady within its recent range as both currencies react to global influences.
What could change it:
• Upside risk: Any unexpected improvement in global risk appetite could drive the NZD higher.
• Downside risk: Further deterioration in trade relations affecting commodity prices could pressure the NZD downward.
