FxWirePro: USD/ZAR hits three-week high after hot U.S. PPI data

•  USD/ZAR hit  three-week high on  Thursday as   dollar strengthened after hotter-than-expected producer inflation data.

• The Producer Price Index for final demand rose 0.4% last month after an upwardly revised 0.1% gain in July, the Labor Department's Bureau of Labor Statistics said on ​Thursday..

• Meanwhile, Data ‌from ⁠Statistics South Africa showed mining output fell 7.5% year on year in July, while manufacturing output rose 1.1%.

• Traders are now pricing in a 70% chance of an increase in ​U.S. interest rates next week, up from 62% before the data, according to ​the CME FedWatch Tool.

• Like other risk-sensitive currencies, the rand has ​been driven by global market sentiment, particularly since the ​start of the U.S.-Iran war on February 28, alongside domestic economic developments.

• Immediate resistance is located at 16.269(Higher BB), any close above will push the pair towards 16.327(38.2%fib).

• Strong support is seen at 16.144(38.2%fib) and break below could take the pair towards 15.076(SMA 20).

Recommendation: Good to sell around 16.180 with stop loss of 16.100 and target price of 16.270