FxWirePro: USD/ZAR rallies on tariff uncertainty, eyes 18.500

• USD/ZAR hit a two and half month high on Friday  as the rand weakened amid concerns over higher U.S. tariffs, following South Africa’s failure to secure a trade deal ahead of Washington’s deadline. .  

• President Trump, in a Thursday executive order, revised tariffs for multiple nations but left South Africa’s 30% rate intact, reaffirming his push for more U.S.-favorable trade terms.

• While, the U.S. imposed 25% tariffs on Indian exports, 20% on Taiwan, and 19% on Thailand and Malaysia, while South Korea negotiated a lower 15% rate. Vietnam, Indonesia, the Philippines, Japan, and Cambodia have secured deals.

• Focus shifts to Friday’s U.S. non-farm payrolls report, a key input for the Fed’s policy outlook. Markets expect job gains to moderate in July, with the jobless rate ticking up to 4.2%.

• At 11:51 GMT, the dollar was trading at 18.290 up 0.43 % against the rand

• Immediate resistance is located at 18.0470(50%fib), any close above will push the pair towards 18.808(23.6%fib).

• Strong support is seen at 18.791  (50%fib) and break below could take the pair towards 17.907 (61.8%fib).

Recommendation: Good to buy around 18.200 with stop loss of 17.900 and target price of 18.500