The USD ZAR was higher by 0.55% today as the pair tries to bounce from support at the 15.20 level. The dollar could mount a recovery from here but it’s been a long year for the greenback against the rand.
Manufacturing PMIs from the South African economy showed a reading of 52.6 compared to the previous 60.9 figure. U.S. PMI readings came in as expected with the economy also showing strength above the expansionary 50 level but traders are looking at the bigger picture.
The big event for the U.S. dollar this week will be Non-Farm Payrolls figures for November with traders expecting a reading of 500k new jobs added to the economy. This would be lower than the previous month’s number of 638k. The unemployment rate has fallen from a high of 14.7% in April, to 6.9% in October and the number is expected to fall further to 6.7%.
USDZAR Technical Outlook
USDZAR has managed to hold support at the 15.20 level despite a sell-off yesterday. The resistance for the pair is at the 15.50 level and a daily close above there is needed to begin repairing the recent damage. If the dollar can’t see strength this week then a move to 15.00 is possible. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
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USDZAR Daily Chart
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