Forex Market: USD/ZAR daily trading outlook

Yesterday’s trade saw USD/ZAR within the range of 11.2825-11.1600. The pair closed at 11.2740, gaining 0.21% on a daily basis.

At 8:45 GMT today USD/ZAR was up 0.31% for the day to trade at 11.3102. The pair held in a daily range of 11.2624-11.3288.

Fundamentals

United States

The National Federation of Independent Business is expected to report at 12:30 GMT that confidence among owners of small businesses likely declined in October, with the corresponding NFIB Small Business Optimism index projected to come in at 95.1, compared to 95.3 a month earlier. The data is due out at 12:30 GMT.

The NFIB Research Foundation releases this report on the second Tuesday of each month. It is a composite of ten seasonally-adjusted components based on the survey results of NFIB members who are asked regarding their plans to increase employment, make capital outlays and increase inventories, as well as their expectations for economic improvement, real sales levels, current inventory, current job openings, expected credit conditions, expansion outlook and earnings trend.

Meanwhile, Redbook Research Inc is expected to report that its Redbook Index rose by an annualized 3.1% last week, compared to 3.9% during the preceding period.

The Redbook index represents the sales-weighted growth of year-on-year same-store sales, largely representing the US retail sector. It is based on sales data of around 9 000 large general merchandise retailers which represent more than 80% of the equivalent ‘official’ retail sales series collected and published by the US Commerce Department.

South Africa

Statistics South Africa is expected to report at 11:00 GMT that the countrys manufacturing production contracted at the annualized pace of 0.9% in September, following up on a 1.2% decline in August.

Month-on-month, manufacturing production is expected to have fallen by 1.3% in September, compared to a 2.2% expansion a month earlier.

Technical view

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 11.2388. In case USD/ZAR manages to breach the first resistance level at 11.3177, it may continue up to test 11.3613. In case the second key resistance is broken, the pair could to advance to 11.4402.

If USD/ZAR manages to breach the first key support at 11.1952, it may continue to slide and test 11.1163. With this second key support broken, movement to the downside could extend to 11.0727.

The mid-pivot levels for today are as follows: M1 – 11.0945, M2 – 11.1558, M3 – 11.2170, M4 – 11.2783, M5 – 11.3395, M6 – 11.4008.

In weekly terms, the central pivot point is at 11.2105. The three key resistance levels are as follows: R1 – 11.4130, R2 – 11.5660, R3 – 11.7685. The three key support levels are: S1 – 11.0575, S2 – 10.8550, S3 – 10.7020.