FxWirePro: USD/ZAR recovers as traders assess US and South African data

• USD/ZAR recovered some ground on Thursday   as investors assessed flat US PPI data and weaker-than-expected domestic mining production data.

• U.S. producer prices were unchanged in July as lower goods prices offset a modest rise in services costs, strengthening expectations that the Federal Reserve could leave interest rates unchanged next month.

• South Africa's mining output fell 4.0% year-on-year in June, easing from a revised 5.1% decline in May but still performing worse than analysts' expectations for a 3.4% drop.

• Like other risk-sensitive currencies, the rand ​often takes its cues from global ​developments,   U.S. economic data, alongside ‌domestic ⁠economic data.

• Immediate resistance is located at 16.338  (50%fib), any close above will push the pair towards 16.442(SMA 20).

• Strong support is seen at 16.094(38.2%fib) and break below could take the pair towards 15.920(Lower BB).

Recommendation: Good to sell  around 16.200 with stop loss of 16.400 and target price of 16.000