• The USD/ZAR rebounded on Thursday as risk-sensitive rand weakened as traders evaluated the impact of Wednesday's dramatic tariff announcement.
• In a surprising turn on Wednesday, Trump announced he would temporarily reduce the newly imposed hefty duties on several countries, while intensifying pressure on China.
• Trump targeted China with additional tariffs, raising the rate to 125% on Chinese imports, after Beijing retaliated with an 84% tariff on U.S. goods
•Local politics, including a contentious budget vote that jeopardized the ruling coalition's future also pressured the risk-sensitive rnd alongside Trump's tariffs
• The South African rand is particularly vulnerable to shifts in financial market sentiment, which has worsened significantly due to Trump's global tariff war..
• Immediate resistance is located at 19.520 (38.2%fib), any close above will push the pair towards 19.861(23.6%fib).
• Strong support is seen at 19.245(50%fib) and break below could take the pair towards 18.980(61.8%fib)
Recommendation: Good to buy around 19.500 with stop loss of 19.300 and target price of 20.100
