FxWirePro: USD/ZAR firms as rand on back foot as investors seek budget clarity, tariff relief

•USD/ZAR firmed on Thursday as   investors awaited clarity on the South Africa’s budget plans.

• The proposal to lift VAT by a combined 1 % over two years has pitted the country’s largest parties against each other and rattled local markets.

• Debate over the VAT hike has dragged on for weeks, revealing deep fissures between the ANC and its coalition partner, the DA.

•The Democratic Alliance, the GNU’s No. 2 party, has raised talk of a walkout after suing to block the VAT hike and opposing the fiscal framework in parliament.

• The rand has fluctuated in recent weeks, influenced by political tensions over South Africa's budget and ongoing uncertainty surrounding U.S. tariff policies.

•At GMT 16:14, the pair was trading up 0.90 percent  at 18.804

• Immediate resistance is located at 18.894  (April 18th high), any close above will push the pair towards 18.978(23.6%fib).

• Strong support is seen at 18.724 (50%fib) and break below could take the pair towards 18.466(61.8%fib)

Recommendation: Good to buy around 18.800 with stop loss of 18.350 and target price of 19.100