FxWirePro: USD/ZAR dips after US inflation and jobless claims data

• USD/ZAR edged lower on  Thursday as   investors digested  U.S. inflation  and jobless claims data.

• U.S. consumer prices rose at the fastest pace in seven months in August, driven by housing and food, but a jump in jobless claims kept the Fed on course for a rate cut next week.. 

• US CPI rose 0.4% in August, the largest increase since January, after a 0.2% gain in July, the Labor Department reported. Annual CPI rose 2.9% in August, the biggest gain since January, after a 2.7% increase in July.

• Initial claims for state unemployment benefits increased by 27,000 to a seasonally adjusted 263,000 last week, overshooting economists’ forecast of 235,000, according to the Labor Department.

• Immediate resistance is located at 17.592(SMA 20), any close above will push the pair towards 17.730(38.2%fib).

• Strong support is seen at 17.410(23.6%fib) and break below could take the pair towards 17.324(Lower BB)

Recommendation: Good to sell  around 17.500 with stop loss of 17.600 and target price of 17.200