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Intercalation of Fe atoms between the van der Waals coupled layers of NbS2 is a system known to induce antiferromagnetism on the triangular superlattice of Fe atoms. Recently, current-induced resistance switching phenomena that onset at the antiferromagnetic transition temperature were discovered in Fe0.33NbS2Using our scanning birefringence microscope we discovered that the magnetic transition is accompanied by local breaking of 3-fold rotational symmetry; indicating a coupled magnetic and nematic phase transition. Our microscopy yielded striking images of domains of coupled antiferromagnetic/nematic order with relative orientation 2π/3. This 3-fold (Z3) nematic orderis qualitatively different from the Ising nematicity found in Fe-pnictide crystals, as the global anisotropy ofZ3 nematics can be continuously reoriented by external perturbations . Probing the local dynamics of nematic reorientation and domain wall propagation to further understand switching phenomena is a major goal of future research.