FxWirePro: USD/ZAR eases as weaker dollar and lower oil prices support rand

• USD/ZAR edged lower on Tuesday as a weaker dollar and falling oil prices supported the rand, offsetting weaker-than-expected domestic mining data.

• South African mining production contracted 12.7% annually in August, compared with a revised 7.0% drop in the previous month, according to data released Tuesday.

• Oil prices declined as traders assessed supply risks following attacks on Saudi Arabia and weighed the possibility of additional diesel supplies from Russia.

•  Investors are also awaiting Wednesday’s US Consumer Price Index report, one of the final key data releases ahead of the Federal Reserve’s late-October policy meeting..

•Like other risk-sensitive currencies, the rand often takes its cues ​from global factors, particularly US monetary ​policy, ⁠alongside domestic economic data.

• Immediate resistance is located at 16.542  (38.2%fib), any close above will push the pair towards 16.737(Higher BB).

• Strong support is seen at 16.445 (SMA20) and break below could take the pair towards 16.281(38.2%fib)

Recommendation: Good to buy around 16.500 with stop loss of 16.300 and target price of 16.800