The circulation that was to become tropical cyclone Agi was first identified as a low at 0000 UTC 8 January some 1200 km east of Cooktown. During the next two days this circulation drifted slowly northwestwards without significant development. The low continued to move northwestwards into the Papua New Guinea region and the central pressure then began to fall until at 0600 UTC 11 January it became a tropical cyclone. The system was then about 100 km east of Misima with a central pressure of 994 hPa.
Tropical cyclone Agi moved first west-southwest and then very slowly southeast while gradually deepening. At about 1500 UTC 12 January the system moved back into the Eastern Australian region near 12°S, 154°E with a central pressure of 980 hPa. It continued to move southeastwards without further deepening for the next 24 hours.
At about 1800 UTC 13 January the system began to fill. It was beginning to interact with tropical cyclone Anne , which had formed to the east of Fiji at about the time of the formation of tropical cyclone Agi , and moved generally southwest to be south of New Caledonia. At around 0000 UTC 14 January tropical cyclone Agi began to track in a more easterly direction and passed into the Fiji region two hours later at 19°S with a central pressure of 994 hPa.
The system continued to move slowly east- southeast and gradually filled until at 2100 UTC 14 January it was no longer of cyclone intensity.
The highest estimated mean wind speed was 95 km/h with estimated gusts to 135 km/h. The lowest estimated central pressure was 980 hPa. The lowest reported pressure was 995.9 hPa at Misima at 1800 UTC 11 January 1988. Apart from producing strong winds along the Queensland coast this system had no effect on the Australian mainland.