FxWirePro: USD/ZAR slips as rand gains despite weak manufacturing data

•  USD/ZAR pair edged lower on Thursday as the South African rand strengthened, supported by a rebound in gold prices.

• South African rand gained despite data showing domestic manufacturing output contracted more than expected, with stronger precious metal prices helping offset concerns over the weak

•The ​U.S dollar was last down 0.1% against ⁠a basket of currencies, while prices of ​gold, a key South African export rose more than ​1%.

•South Africa's manufacturing output fell 4.3% year-on-year in May, after falling by 2.9% year-on-year in April, statistics agency data showed ​on Thursday.

•Economists polled had expected ​output to decrease 3.2%, while Nedbank economists forecast a 3% ‌contraction.

• Immediate resistance is located at 16.498(50%fib), any close above will push the pair towards 16.597. (Higher BB)

• Strong support is seen at 16.139(38.2%fib) and break below could take the pair towards 16.101(Lower BB)

Recommendation: Good to sell around 16.400 with stop loss of 16.700  and target price of 16.100