• USD/ZAR dipped on Monday as South African rand climbs against the dollar after release of mixed South African economic data.
• The dollar slipped lower on Monday as investors awaited a series of U.S. labor market reports that could influence Fed policy expectations.
• South African manufacturing sentiment fell in August, with subdued activity and weak domestic and export demand, a PMI survey showed.
• Separate data from the National Association of Automobile Manufacturers of South Africa (NAAMSA) showed that domestic new vehicle sales surged 18.7% year-on-year in August, reflecting a strong rebound in the automotive sector.
• Immediate resistance is located at 17.644 (SMA 20), any close above will push the pair towards 17.837(38.2%fib).
• Strong support is seen at 17.437 (23.6%fib) and break below could take the pair towards 17.406 (Lower BB).
Recommendation: Good to buy around 17.500 with stop loss of 17.300 and target price of 18.000
