FxWirePro: USD/ZAR rand wobbles after Trump reignites trade fears

• USD/ZAR initially firmed but later eased as markets absorbed fresh tariff threats from U.S. President Donald Trump, which weighed on risk sentiment and curbed demand for emerging market assets.

•  Trump escalated trade tensions on Saturday by warning that a 30% tariff on imports from two major U.S. trading partners the European Union and Mexico would take effect from August 1.

• South Africa, too, is at risk of being hit with a 30% tariff on its exports to the U.S., along with an extra 10% duty due to its affiliation with the BRICS bloc of emerging economies..

• Looking ahead, South Africa’s statistics agency is scheduled to release mining production data on Tuesday  and retail sales figures on Wednesday  , offering fresh insight into the state of Africa’s most industrialized economy .

• At GMT 14:39,the dollar   was down 0.18 % at 17.896  against South African rand.

• Immediate resistance is located at 17.975(July 1th high), any close above will push the pair towards 18.096(Higher BB).

• Strong support is seen at 17.836(38.2%fib) and break below could take the pair towards 17.706(June 1th low)

Recommendation: Good to buy around 17.850 with stop loss of 17.700 and target price of 18.100