I think this name is really sweet. Then again, I imagine it pronounced the way the little boy in "Cinema Paradiso" pronounces "Alfredo". And I have a soft spot for Italian names.
The only girl, in my opinion, who can carry off the name "Fred" is the character from the musical, "Once Upon A Mattress", the musical comedy version of the old fable, "The Princess and the Pea". She drinks like a lord, sings like a bird, dances with grace, a clever, clownish wit! If you think she'll be a tomboy, go for it!