• USD/ZAR strengthened on Tuesday as the South African rand weakened as investors awaited the finance minister's announcement on the timing of a revised national budget.
• Finance Minister Enoch Godongwana is now revising fiscal plans after shelving a controversial VAT hike that faced strong political backlash.
• Godongwana initially proposed a 2% VAT hike in his February budget, which was delayed last minute due to coalition disagreements.
• The 2025 budget dispute has become the biggest challenge for the Government of National Unity, formed after the ANC lost its parliamentary majority in last year's election..
• No major South African economic data is expected on Tuesday, but March credit extension, budget, and trade figures are due on Wednesday.
• Immediate resistance is located at 18.804 (38. 2%fib), any close above will push the pair towards 18.928( April 25th high).
• Strong support is seen at 18. 453 (61.8%fib) and break below could take the pair towards 18.253 (Lower BB)
Recommendation: Be on sideliness
