FxWirePro: USD/ZAR eyes downside as dollar eases after US CPI data

• 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