• USD/ZAR declined sharply on Friday as South African rand jumped after comments by Federal Reserve Chair Jerome Powell signalled an interest rate cut next month.
• Like other risk-sensitive currencies, the rand frequently responds to global influences like U.S. monetary policy, alongside significant domestic factors.
• Next week, investors will turn their attention to July’s producer inflation, money supply, trade, and budget balance figures for insights into the health of South Africa's economy.
• Immediate resistance is located at 17.8568 (38.2%fib), any close above will push the pair towards 18.0038(50%fib).
• Strong support is seen at 17.6830 (23.6%fib) and break below could take the pair towards 17.5828 (Lower BB).
Recommendation: Good to buy around 17.7040 with stop loss of 17.8700 and target price of 17.5560
