FxWirePro: USD/ZAR edges higher as rand weakens ahead of South Africa inflation data

• USD/ZAR edged higher on Friday as South African weakened  as investors shifted their focus to ​next week's inflation data and monetary policy ‌meeting

• Investors are turning their attention to Wednesday’s August inflation figures for signals on the South African Reserve Bank’s next interest-rate moves..

• Annual headline inflation slowed to 4.3% in July, recording its first drop in five months.

• South Africa’s central bank surprised investors and economists by leaving its main lending rate unchanged at its previous meeting, saying monetary policy was sufficiently restrictive to bring inflation back to target within two years.

• Like other risk-sensitive currencies, the rand tends ​to take its cues from global developments, including U.S. economic data and policy signals..

• Immediate resistance is located at 16.367(Higher BB), any close above will push the pair towards 16.468(38.2%fib).

• Strong support is seen at 16.220(50%fib) and break below could take the pair towards 16.111(SMA 20).

Recommendation: Good to buy around 16.300 with stop loss of 16.100 and target price of 16.500