• USD/ZAR initially gained but gave up ground on Tuesday as traders digested South Africa’s second quarter GDP data.
• South Africa's economy shrank for the first time in almost two years in the second quarter of 2026, official data showed on Tuesday.
• Gross domestic product contracted 0.2% on a seasonally adjusted quarter-on-quarter basis Economists polled had forecast a 0.1% contraction.
•The contraction was mainly driven by output falls in the mining (-3.0%), manufacturing (-1.8%) and trade (-1.9%) sectors.
• Focus will now turn to the current account , mining , and manufacturing figures on Thursday for further clues on the health of Africa's most industrialised economy..
• Immediate resistance is located at 16.086(SMA20), any close above will push the pair towards 16.165(38.2%fib).
• Strong support is seen at 16.910(23.6%fib) and break below could take the pair towards 15.836(Lower BB)
Recommendation: Good to sell 16.100 with stop loss of 16.300 and target price of 15.900
