FxWirePro: USD/ZAR extends drop, 23.6%fib support

•   USD/ZAR slipped lower on Wednesday as the rand strengthened after soft U.S. data raised expectations of a Fed rate cut in December.

•   Markets have strengthened bets on a quarter-point Fed rate cut next month after weak data and dovish central bank comments.

•On the domestic front, all eyes will be on producer inflation numbers due on Thursday and credit  , trade   and budget   data on Friday.

•  Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data in addition to domestic releases..

• At GMT 15:31,the dollar was down 0.43% at 17.125 against South African rand .

• Immediate resistance is located at 17.234  (SMA 20), any close above will push the pair towards 17.277(38.2%fib)

• Strong support is seen at 17.014(23.6%fib) and break below could take the pair towards 16.936(Lower BB)

Recommendation: Good to sell around 17.200 with stop loss of 17.300 and target price of 16.950