The New Zealand dollar (NZD) has recently been under pressure due to heightened risk aversion in the currency markets. Analysts indicate that the NZD's performance will likely continue to be influenced by fluctuations in risk sentiment, especially as today’s manufacturing PMI data is released. Given the currency's sensitivity to global market moods, any shift could impact its value further.
Moreover, economists warn that geopolitical developments, such as the possibility of another Trump presidency leading to new tariffs on critical trading partners like Europe and China, could have negative repercussions for the NZD. Stricter trade measures may dampen demand for New Zealand’s key commodities, which would adversely affect the currency's strength.
In relation to the Fijian dollar (FJD), the tourism sector in Fiji is poised for significant growth, with forecasts suggesting that annual tourist arrivals could reach a million by the end of 2024. This development is expected to bolster the Fijian economy, turning tourism into a $FJ3 billion industry as new markets open up and investments in resorts increase to meet rising demand.
Currently, the NZD to FJD exchange rate is trading at approximately 1.3526, marking a 7-day low and sitting just above its 3-month average of 1.3396. This trading range has been relatively stable for the past few months, fluctuating between 1.2899 and 1.3742, indicating that despite recent pressures, the NZD has not strayed significantly from its historical norms against the FJD. Analysts suggest that traders should monitor both the global risk environment and domestic economic indicators closely, as these factors will likely remain decisive in shaping future NZD to FJD exchange rate movements.