FxWirePro: USD/ZAR trades in narrow range ahead of key U.S. inflation report

• USD/ZAR traded in tight range on Tuesday  as investors digested domestic economic data and  awaited release of key US inflation data.

• South Africa’s official unemployment rate increased for the second consecutive quarter, rising to 33.2% in April-June from 32.9% in January-March, according to data released by the statistics agency on Tuesday.

•Globally, investors are keeping an eye out for the U.S. consumer inflation report for July later in the day that could shape expectations for a September Federal Reserve rate cut.

•Meanwhile,the trade minister of South Africa announced that the country will submit a revised offer for a trade deal to Washington on Tuesday. This

• The rand, like other risk-sensitive currencies, often takes cues from global drivers such as U.S. policy and economic data.

• At GMT 11:57,the dollar   was up 0.02% at 17.740 against South African rand.

• Immediate resistance is located at 17.779(SMA 20), any close above will push the pair towards 17884(38.2%fib).

• Strong support is seen at 17.464(23.6%fib) and break below could take the pair towards 17.374(Lower BB)

Recommendation: Good to buy  around 17.700 with stop loss of 17.500 and target price of 18.000