• USD/ZAR traded lower on Friday as the South African rand advanced amid broad-based dollar weakness following softer-than-expected U.S. jobs data, which eased expectations of a near-term Fed rate hike.
• Domestic investors focused on the June S&P Global whole-economy PMI , which showed South Africa's private sector returned to modest growth as easing price pressures helped offset a second consecutive monthly decline in output and new orders.
•A manufacturing PMI on Wednesday showed that South African factory sentiment deteriorated in June, though lower oil prices boosted confidence about future business conditions.
•Like other emerging-market currencies the rand tends to take direction from global factors, including U.S. economic data and geopolitical developments.
• Immediate resistance is located at 16.393 (SMA 20) any close above will push the pair towards 16.470(50%fib).
• Strong support is seen at 16.158(38.2%fib) and break below could take the pair towards 16.096(Lower BB).
Recommendation: Good to sell around 16.300 with stop loss of 16.450and target price of 16.150
