FxWirePro: USD/ZAR inches lower, set to stay on back foot

• USD/ZAR edged lower on Monday as investors awaited upcoming inflation data and the potential removal of South Africa from the Financial Action Task Force’s ‘grey’ list.

• Domestic investors will closely watch September’s consumer price inflation data this week for insights into the health of Africa’s largest industrialized economy.

• Economists   anticipate that South Africa’s consumer price inflation will inch higher to 3.5% in September, up from 3.3% in August.

• The Financial Action Task Force (FATF) will hold its plenary meeting from October 22 to 24, where global anti-money laundering and counter-terrorism financing policies will be discussed.

•At 0811 GMT the dollar traded at 17.310 against the rand, down 0.24% .

• Immediate resistance is located at 17.446 (38.2%fib), any close above will push the pair towards 17.490 (Higher BB).

• Strong support is seen at 17.219(SMA 20) and break below could take the pair towards 17.082 (Lower BB).

Recommendation: Good to sell around 17.400 with stop loss of 17.600 and target price of 17.200