FxWirePro: USD/ZAR slips lower as dollar weakens ahead of Fed minutes

• USD/ZAR dipped on Wednesday as the U.S. dollar weakened ahead of the Federal Reserve’s latest policy meeting, while investors awaited fresh clues on the central bank’s interest-rate outlook.

• The U.S. Federal Reserve releases minutes from the July meeting. The central bank left rates on hold, but Chairman Kevin Warsh unsettled markets by offering few clues on how policymakers might respond to persistent inflation.

• Annual headline ​consumer inflation eased to 4.3% year-on-year in July ​from 5.0% in June   , lower than the 4.5% predicted by economists polled by Reuters.

• A renewed escalation in U.S.-Iran hostilities has sent global oil prices higher, prompting analysts to warn of a possible rise in inflation.

•Separate data showed South African retail sales rose 1.6% year-on-year in June after ​rising by a revised 2.2% in ​May..

• Immediate resistance is located at 16.299(38.2%fib) any close above will push the pair towards 16.397(SMA20).

• Strong support is seen at 16.082(23.6%fib) and break below could take the pair towards 15.942(Lower BB).

Recommendation: Good to sell around 16.100 with stop loss of 16.250 and target price of 15.900