• USD/ZAR dipped on Tuesday after U.S. consumer inflation slowed more than expected in June, ruling out an interest rate increase from the Federal Reserve this year.
• U.S. inflation slowed more than expected in June as lower energy prices eased price pressures, but markets continued to expect a Federal Reserve rate hike this year amid renewed Middle East tensions.
• The data showed that the consumer price index rose 3.5% in June from a year earlier, below economists' forecast of 3.8%.
• Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy in addition to domestic data.
• Immediate resistance is located at 16.480 (50%fib) any close above will push the pair towards 16.598(Higher BB).
• Strong support is seen at 16.303(Daily low) and break below could take the pair towards 16.138(38.2%fib).
Recommendation: Good to sell around 16.400 with stop loss of 16.550 and target price of 16.200
