FxWirePro: USD/ZAR slips as rand firms despite weak South African data

• USD/ZAR slipped lower on Tuesday as the South African rand strengthened, shrugging off data from the domestic central bank showing that business conditions deteriorated for a third consecutive month.

• South Africa’s central bank reported on Tuesday that its composite leading business cycle indicator fell 1.4% month-on-month in June.

• The indicator uses data from vehicle sales, business sentiment, money supply and other measures to assess the economic outlook for Africa’s biggest economy.

• Later in the week, July producer inflation and budget balance figures will be closely watched for additional signals on the country’s economic outlook.

• 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.

• Immediate resistance is located at 16.036(Daily high), any close above will push the pair towards 16.206(38.2%fib).

• Strong support is seen at 15.932 (23.6%fib) and break below could take the pair towards 15.799(Lower BB).

Recommendation: Good to sell around 16.000 with stop loss of 16.200 and target price of 15.800