• USD/ZAR dipped on Thursday as investors digested US September payrolls data and SARB rate decision.
• South Africa’s central bank lowered its benchmark lending rate by 25 basis points to 6.75% on Thursday, marking its first meeting since the inflation target was reduced.
• Nonfarm payrolls rose by 119,000 in September, following a revised decline of 4,000 jobs in August, the Labor Department’s Bureau of Labor Statistics reported.
•The report, originally scheduled for release on October 3, was delayed due to the 43-day government shutdown. The longest shutdown on record also forced the BLS to cancel October’s employment report, as no household survey data was collected to calculate that month’s unemployment rate.
• Immediate resistance is located at 17.256 (38.2%fib), any close above will push the pair towards 17.406(Nov 7th high).
• Strong support is seen at 17.000(Psychological level) and break below could take the pair towards 16.971(23.6%fib).
Recommendation: Good to buy around 17.100 with stop loss of 16.900 and target price of 17.300
