FxWirePro: South African rand gains gradually against U.S. dollar despite lower than expected CPI, core CPI data

• USD/ZAR is currently trading around 13.25 levels.

• It made intraday high at 13.28 and low at 13.23 levels.
   
• Intraday bias remains neutral till the time pair holds key support at 13.23 marks.       
   
• A daily close above 13.26 will take the parity higher towards key resistances around 13.37, 13.44, 13.58, 13.75, 13.95, 14.16, 14.29, 14.50, 14.75, 14.96, 15.05, 15.28 and 15.45 marks respectively.
   
• Alternatively, a daily close below 13.26 will drag the parity down towards key supports at 13.12, 12.95, 12.70, 12.48, 12.30, 12.22 and 12.14 levels respectively.
   
• Yesterday South Africa released CPI, core CPI data.
   
• South Africa’s March CPI y/y decreases to 6.1 % (forecast 6.30 %) vs previous 6.3 %.
   
• South Africa’s March CPI m/m decrease to 0.6 % (forecast 0.90 %) vs previous 1.10 %.
   
• South Africa’s March core inflation m/m decrease to 0.7 % (forecast 1.1 %) vs previous 1.1 %.

We prefer to take short position in USD/ZAR only below 13.23, stop loss at 13.37 and target of 12.95/12.70.