• USD/ZAR recovered on Monday ahead of the release of a local manufacturing purchasing managers index and vehicle sales data for May.
•Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa's most industrialised economy.
•Manufacturing sentiment improved in April, helped by a rebound in output and new sales orders.
• Investors will next focus on vehicle sales data due at 1200 GMT for fresh insight into consumer demand for big-ticket purchases.
• Oil prices climbed more than 2% on Monday as fresh U.S.-Iran strikes and Israel’s deeper military push into Lebanon heightened Middle East tensions..
• Immediate resistance is located at 16.400 (50%fib), any close above will push the pair towards 16.451(38.2%fib).
• Strong support is seen at 16.20 (Lower BB) and break below could take the pair towards 16.061(38.2%fib).
Recommendation: Good to buy around 16.400 with stop loss of 16.550 and target price of 16.200
