• USD/ZAR edged lower on Wednesday as the South African rand benefited from an uptick in gold prices.
•Traders looked ahead to consumer inflation data due next week for signals on the health of Africa's most-industrialised economy
• As one of the world’s top precious metals producers, South Africa usually sees gains when bullion prices strengthen.
• Markets will focus on November’s consumer inflation figures, set for release on December 17, following South Africa’s decision to cut its inflation target to 3% last month..
• Annual headline inflation is currently at 3.6%, with a Reuters poll indicating economists expect no change.
• The South African Reserve Bank’s Q3 bulletin on Monday and producer inflation numbers on Thursday are also on next week’s calendar.
• Immediate resistance is located at 16.678(Daily high), any close above will push the pair towards 16.773(38.2%fib).
• Strong support is seen at 16.529 (23.6%fib) and break below could take the pair towards 16.407(Lower BB)
Recommendation: Good to sell 16.630 with stop loss of 16.800 and target price of 16.400
