• USD/ZAR edged lower on Tuesday as investors took stock of a series of delayed economic data from the United States.
• The dollar weakened after data showed U.S. retail sales rose less than expected in September, signaling a slowdown in economic momentum and reinforcing market expectations for a rate cut next month.
• U.S. producer prices, on the other hand, advanced in September as expected.
• South Africa’s composite leading business cycle indicator declined 1.2% month-on-month in September, according to central bank data released on Tuesday.
• Like other risk-sensitive currencies, the rand tends to react to global factors such as U.S. monetary policy and economic data in addition to domestic indicators.
• Immediate resistance is located at 17.372 (50%fib), any close above will push the pair towards 17.472(Higher BB).
• Strong support is seen at 17.160 (38.2%fib)) and break below could take the pair towards 17.000(Psychological level)
Recommendation: Good to buy around 17.200 with stop loss of 17.000 and target price of 17.400
