• USD/ZAR firmed on Tuesday as dollar rebounded as traders returned from the US labor day holiday.
• Traders sold have sold the dollar amid concerns Trump’s actions may undermine Fed independence, despite unclear prospects for rate cuts..
• US economic data for August will be closely watched this week to gauge the impact of Trump’s policies on industry and the labor market.
• Like other risk-sensitive currencies, the rand typically reacts to global factors, including U.S. policy and economic data, when domestic releases are limited.
• Immediate resistance is located at 17.787 (38.2%fib), any close above will push the pair towards 17.853(Higher BB).
• Strong support is seen at 17.558 (Daily low) and break below could take the pair towards 17.425 (Lower BB).
Recommendation: Good to buy around 17.700 with stop loss of 17.500 and target price of 18.100
