FxWirePro: USD/ZAR gains as weak SA Manufacturing data hits rand

• USD/ZAR  gained some upside traction after  local manufacturing survey showed ‌ South African manufacturing sentiment deteriorated in July.

• South African manufacturing sentiment ​weakened in July, dragged down by weak ⁠export demand and concerns about renewed ​hostilities between the U.S. and Iran, a purchasing managers' ​index survey showed.

• Manufacturers turned more cautious about the economic outlook, with the index measuring expectations for business conditions over the next six months falling to 49.3 from 56.6 previously, signalling weaker confidence ahead.

• Separately, data from South Africa's automotive industry body NAAMSA showed new vehicle sales rose 11.9% year-on-year in July, slowing from a 15.3% increase in June.

• Economists expected vehicle sales growth to slow to 9.2% in July, reflecting a high comparison base from a year earlier and a less supportive economic environment.

• Immediate resistance is located at 16.687(50%fib) any close above will push the pair towards 16.829(Higher BB).

• Strong support is seen at 16.495(SMA 20) and break below could take the pair towards 16.321(38.2%fib).

Recommendation: Good to sell  around 16.600 with stop loss of 16.750 and target price of 16.400