United States Dollar Growth - This week has witnessed stronger-than-expected GDP growth (3 percent year on year)

As well as a larger-than-expected current account surplus (2.1 percent of GDP)

Which has provided some internal support to the rand

However, the domestic momentum for advances has once again been eclipsed by market risk aversion

The Consumer Price Index (CPI) in the United States recorded inflation and core inflation at 8.6 percent year on year in May 2022

Core CPI data indicated inflation at 6%, compared to 5.9% predicted

Higher inflation supports the world's largest economy's a faster rate of monetary tightening, and as a result, US Treasury yields and the US dollar have strengthened

At the R15.30/$ support level, the USD/ZAR has established a bullish (engulfing) price reversal

The stochastic oscillator moves out of the oversold condition and breaks through trend line resistance to signal the reversal

The price has gotten dangerously near to its original resistance objective of R15.70/$

If this level is breached, the next resistance levels from the move include R15.85/$ and R16.20