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USD/ZAR rebounds as SARB holds rates at 7.0%
Societe Generale said the pair reclaimed its 200-day moving average, with support near 16.57/16.50 and upside targets up to 17.58/17.72.
Societe Generale analysts said USD/ZAR has resumed its strength after the South African Reserve Bank held its policy rate at 7.0%, a decision that surprised market expectations for a hike.
In the analysts' view, the currency pair has broken above a multi-month descending trend line and reclaimed its 200-day moving average, pointing to renewed upside momentum.
Societe Generale flagged support around the 200-day moving average near 16.57/16.50, while upside levels are seen at 16.92, 17.25, and 17.58/17.72.
The note also said the SARB revised its inflation forecast lower for 2026, but expects inflation to remain above target through 2028, with Governor Kganyago citing the lagged effects of prior tightening and weak growth concerns.