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FxWirePro: USD/ZAR dips as rand firms on stronger economic data

•  USD/ZAR dipped on Wednesday as the rand firmed after month-end economic data offered fresh clues on South Africa’s economic health.

• Data from South Africa’s M3 money supply growth accelerated to 8.89% in August from 8.57% in July, while private-sector credit growth rose to 7.47% from 7.41%, beating the 6.90% Reuters forecast.

• Traders also assessed August budget balance, producer inflation and trade balance data released by South Africa’s National Treasury, Statistics South Africa and the South African Revenue Service, respectively.

• Meanwile, growth in producer ​prices slowed ​in ⁠August, while the trade surplus was wider than analysts had ​expected in a Reuters poll.

• Like other risk-sensitive currencies, the rand has ​been driven by global market sentiment, particularly since the ​start of the U.S.-Iran war on February 28, alongside domestic economic developments.

• Immediate resistance is located at 16.466 (38.2%fib), any close above will push the pair towards 16.603(Higher BB).

• Strong support is seen at 16.325(Daily low) and break below could take the pair towards 16.233(50%fib).

Recommendation: Good to sell around 16.400 with stop loss of 16.600 and target price of 16.200

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