• USD/ZAR edged lower on Wednesday as traders awaited inflation and retail sales data that will shed light on the country's economic outlook.
• Domestically-focused traders are waiting for December consumer inflation data due at 0800 GMT and November retail sales at 1100 GMT.
• Economists polled expect annual inflation will come in at 3.6% for December, up from 3.5%.
•Retail sales are forecast to rise from 2.9% in October to 4.8% in November, reflecting the surge in spending associated with Black Friday promotions, based on Nedbank's forecasts.
•Economists polled expect retail sales to edge down to 2.5% in November from 2.9% the month prior.
• Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data.
• Immediate resistance is located at 16.472 (SMA 20), any close above will push the pair towards 16.560(38.2%fib).
• Strong support is seen at 16.314(23.6%fib) and break below could take the pair towards 16.182(Lower BB)
Recommendation: Good to sell around 16.400 with stop loss of 16.600 and target price of 16.200
