• USD/ZAR recovered some ground on Thursday as investors assessed flat US PPI data and weaker-than-expected domestic mining production data.
• U.S. producer prices were unchanged in July as lower goods prices offset a modest rise in services costs, strengthening expectations that the Federal Reserve could leave interest rates unchanged next month.
• South Africa's mining output fell 4.0% year-on-year in June, easing from a revised 5.1% decline in May but still performing worse than analysts' expectations for a 3.4% drop.
• Like other risk-sensitive currencies, the rand often takes its cues from global developments, U.S. economic data, alongside domestic economic data.
• Immediate resistance is located at 16.338 (50%fib), any close above will push the pair towards 16.442(SMA 20).
• Strong support is seen at 16.094(38.2%fib) and break below could take the pair towards 15.920(Lower BB).
Recommendation: Good to sell around 16.200 with stop loss of 16.400 and target price of 16.000
