The USD/ZAR exchange rate moved sideways on Wednesday morning as investors focused on key economic events. The USD to South African rand exchange rate was trading at 16.50, which was slightly above this week’s low of 16.11. The price was also about 5% below the highest level this year.
The USD/ZAR price has moved slightly upwards as investors rush to safe havens. It will next react to the latest economic data from the United States and South Africa. The US will publish the latest retail sales numbers on Wednesday.
Economists expect these numbers to show that the headline retail sales dropped from 1.0% in June to 0.1% in July. In the same month, the core retail sales are expected to have dropped from 1.0% to -0.1% The US will also publish the latest mortgage data.
Meanwhile, in South Africa, data by the statistics agency is expected to show that the country’s retail sales rose from 0.1% in May to 0.4% in June. The low retail sales growth is mostly because of the country’s soaring inflation, which sits at the highest point in 13 years. The central bank has also been hiking interest rates recently.
The USD/ZAR pair will also react to the latest minutes by the Federal Reserve. These minutes will provide more clarity about what officials decided in their last meeting. They will also provide more guidance about what to expect in the upcoming meeting.
USD/ZAR Long (Buy)
Enter At: 16.532521