FxWirePro: USD/ZAR neutral in the near-term, scope for downward resumption

• USD/ZAR edged higher on Tuesday as rand a softened after flurry of mixed economic data from South Africa .

• Data from the South African Reserve Bank revealed that M3 money supply growth slowed to 6.18% last month, down from 6.75% in July

•Credit growth for August came in at 5.86%, just above July's 5.84% and exceeding the 5.20% forecast in a Reuters poll.

• The SARB also published its quarterly bulletin, indicating that South Africa experienced foreign direct investment outflows of 73.5 billion rand ($4.25 billion) in Q2 2025, a sharp shift from inflows of 11.7 billion rand in Q1.

• Trade balance figures showed a surplus of 3.97 billion rand, falling short of analysts’ expectations of 18.25 billion rand.

• Immediate resistance is located at 17.393 (SMA 20), any close above will push the pair towards 17.595 (38.2%fib).

• Strong support is seen at 17.884 (50%fib) and break below could take the pair towards 17.778 (61.8%fib).

Recommendation: Good to sell around 17.300 with stop loss of 17.500 and target price of 17.200