FxWirePro: USD/ZAR strengthens as rand weakens amid U.S.-China trade tensions

• USD/ZAR firmed  on Tuesday as south African rand weakened as risk appetite waned amid renewed U.S.-China trade tensions.

• U.S. Treasury Secretary Scott Bessent said President Donald Trump remains on track to meet Chinese leader Xi Jinping in South Korea for a two-day summit starting on October 31.

• As negotiations between Washington and Beijing intensify, the two nations from Tuesday were charging port fees on ocean shipping firms that move goods ranging from toys to crude oil.

•On the data front, South Africa’s business confidence rose in September on stronger tourism, higher precious metal prices, and increased exports.

• The South African Chamber of Commerce and Industry’s Business Confidence Index  rose to 121.1 in September, up from 120.0 in August, indicating improved business sentiment.

• Immediate resistance is located at 17.502  (38.2%fib), any close above will push the pair towards 17.785 (Aug 27th high).

• Strong support is seen at 17.279 (SMA 20) and break below could take the pair towards 17.088 (23.6%fib).

Recommendation: Good to buy around 17.400 with stop loss of 17.200 and target price of 17.600