• USD/ZAR dipped on Wednesday as dollar weakened after U.S. inflation data met expectations, reinforcing bets that the Federal Reserve would keep interest rates unchanged in September..
• The Consumer Price Index rose 0.1% in July after falling 0.4% in June, marking its first decline in six years, according to the Labor Department’s Bureau of Labor Statistics..
• Over the 12 months through July, the CPI rose 3.4%, easing from a 3.5% increase in June. The Federal Reserve, however, uses the Personal Consumption Expenditures (PCE) price index as its preferred gauge for tracking progress toward its 2% inflation target.
• Domestically, investors are awaiting June mining production data due on Thursday for fresh signals on the health of Africa's largest economy.
•Like other risk-sensitive currencies, the rand has been at the mercy of global market sentiment, particularly since the start of the U.S.-Iran war on February 28.
• Immediate resistance is located at 16.364 (38.2%fib), any close above will push the pair towards 16.464(SMA 02).
• Strong support is seen at 16.052(23.6%fib) and break below could take the pair towards 16.037(Lower BB).
Recommendation: Good to sell around 16.200 with stop loss of 16.400 and target price of 16.000
