FxWirePro: USD /ZAR rebounds after South African CPI dips below SARB band

•USD/ZAR rebounded strongly on Wednesday, buoyed by a firmer U.S. dollar and a sharper‑than‑expected drop in South African inflation..

• South Africa’s annual inflation slowed in March, dropping for the first time in five months to its lowest point since June 2020..

•Headline CPI slipped to 2.7% y/y in March from 3.2% in February, undershooting the 2.9% estimate and dipping below the SARB’s 3–6% target band.

• The rand has seesawed in recent weeks, buffeted by political squabbles over South Africa’s budget and lingering uncertainty about U.S. tariff policies.

 •At GMT 17:19, the pair was trading up 0.50 percent  at 18.662

• Immediate resistance is located at 18.668  (Daily high), any close above will push the pair towards 18.891(50%fib).

• Strong support is seen at 18.524 (61.8fib) and break below could take the pair towards 18.300(Jan 24th low)

Recommendation: Good to buy around 18.600 with stop loss of 18.350 and target price of 18.900