• USD/ZAR hit three-week high on Thursday as dollar strengthened after hotter-than-expected producer inflation data.
• The Producer Price Index for final demand rose 0.4% last month after an upwardly revised 0.1% gain in July, the Labor Department's Bureau of Labor Statistics said on Thursday..
• Meanwhile, Data from Statistics South Africa showed mining output fell 7.5% year on year in July, while manufacturing output rose 1.1%.
• Traders are now pricing in a 70% chance of an increase in U.S. interest rates next week, up from 62% before the data, according to the CME FedWatch Tool.
• Like other risk-sensitive currencies, the rand has been driven by global market sentiment, particularly since the start of the U.S.-Iran war on February 28, alongside domestic economic developments.
• Immediate resistance is located at 16.269(Higher BB), any close above will push the pair towards 16.327(38.2%fib).
• Strong support is seen at 16.144(38.2%fib) and break below could take the pair towards 15.076(SMA 20).
Recommendation: Good to sell around 16.180 with stop loss of 16.100 and target price of 16.270
