USD/ZAR ticked higher on Friday as the South African rand softened amid thin holiday trading
• South Africa’s rand has risen more than 12% versus the dollar in 2025, driven by better fiscal outcomes, effective inflation control, and a rally in precious metals.
• Economic releases this week showed inflation pressures are still moderate, keeping the central bank on track for additional rate cuts in the coming year.
• Consumer inflation slowed to 3.5% in November from 3.6% in October, remaining within the central bank’s ±1 percentage point tolerance band around its new 3% target.
•Producer inflation stood at 2.9% in November, unchanged from October.
• Immediate resistance is located at 16.899(38.2%fib), any close above will push the pair towards 16.6891(38.2%fib).
• Strong support is seen at 16.704 (23.6%fib) and break below could take the pair towards 16.644(Lower BB)
Recommendation: Good to sell 16.800 with stop loss of 16.900 and target price of 16.600


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