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FxWirePro: USD/ZAR downside risk builds after SA Q2 GDP contraction

• 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

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