• USD/ZAR gained some ground on Tuesday as rand was weighed by soft domestic manufacturing data and firmer US dollar.
• The seasonally adjusted PMI sponsored by South African bank Absa fell to 45.8 in August from 46.8 in July, its fourth consecutive monthly decline and the lowest reading so far in 2026.
•Separately, data from South Africa's automotive industry body NAAMSA showed new vehicle sales increased 11.4% year-on-year in August, slowing from 11.9% growth in July.
•The U.S. dollar index was firmer against a basket of currencies as renewed U.S.-Iran hostilities fuelled inflation worries..
• Like other risk-sensitive currencies, the rand tends to take its cues from global developments, including U.S. and domestic economic data and policy signals.
• Immediate resistance is located at 16.194(38.2%fib), any close above will push the pair towards 16.400(50%fib).
• Strong support is seen at 15.923(23.6%fib) and break below could take the pair towards 15.847(Lower BB).
Recommendation: Good to sell around 16.180 with stop loss of 16.250 and target price of 16.000


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