USDZAR Lower on Inflation - Big U.S. Economic Data Awaits

Summary:

USDZAR is 0.40% higher on the day as the pair tries to bounce from recent lows. The U.S. will see a big set of U.S. economic releases today.

USDZAR is 0.40% higher on the day as the pair tries to bounce from recent lows. The U.S. will see a big set of U.S. economic releases on the day which could set out the path forward.

Today’s South African inflation data was higher-than-expected with a 3.3% gain. The number was higher than the analyst predictions of 3.1% and last month’s 3.0%. The interest rates have fallen from 6.25% to 3.5% this year and this could have to move higher if inflation continues.

The U.S. economy has a host of economic data available this afternoon with durable goods orders, PCE inflation, GDP for the third quarter, and then finally FOMC minutes. The USDZAR should see a more definitive path after this afternoon’s trading.

USDZAR Technical Outlook

USDZAR found resistance at the 15.50 level and yesterday was a bearish close into the lows. We are seeing a small bounce today which could see a 15.25 double bottom, or a crash to 15. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.