• USD/ZAR strengthened against dollar on Thursday as south African rand weakened a day after a key U.S. inflation report boosted hopes of a less restrictive Federal Reserve policy this year.
• U.S. core inflation slowed last month, and headline prices were in line with expectations, increasing market bets on two Fed rate cuts by the end of 2025, starting in June.
• Like other risk-sensitive currencies, the rand often tracks global factors such as U.S. economic data when domestic influences are limited.
• At GMT 10:10 the pair was trading up 0.43 percent at 18.551.
• Immediate resistance is located at 18.962(38.2%fib), any close above will push the pair towards 19.000(Psychological level).
• Strong support is seen at 18.702(38.2%fib) and break below could take the pair towards 18.603 (Dec 30th low).
Recommendation: Good to buy around 18.800 with stop loss of 18.500 and target price of 19.100