• USD/ZAR dipped on Wednesday as weaker dollar upbeat South African manufacturing PMI data boosted rand.
• Dollar weakened as a U.S. government shutdown unsettled markets and risked delaying data seen key to gauge the future path of Fed policy rates.
• South Africa’s seasonally adjusted Absa PMI rose to 52.2 in September from 49.5 in August, signaling renewed expansion in factory activity.
• This marked only the second time this year the PMI rose above 50, indicating a return to expansion in factory activity.
At GMT 11:21, the pair was trading down 0.33 percent at 17.186 .
• Immediate resistance is located at 17.283 (Daily high), any close above will push the pair towards 17.386 (38.2%fib).
• Strong support is seen at 17.165(23.6%fib) and break below could take the pair towards 17.108 (Lower BB).
Recommendation: Good to sell around 17.200 with stop loss of 17.300 and target price of 17.050
