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Market Snapshot: ZAR Trims Losses Following China FX RRR Cut

SOUTH AFRICA
  • ZAR has trimmed early weakness following China’s 1% RRR cut from 9% to 8% with risk sentiment improving across the board and the USD backing off from early gains.
  • Losses in local stocks have also slowed on the margins, which were led by commodity companies closely correlated to Chinese demand.
  • USD/ZAR trades +0.05% higher for the day after setting an intraday high at 15.7509. Price action still remains in overbought territory on the daily chart, but could provide support to ZAR in the coming sessions if selling pressure in CNH eases.
  • SAGBs have also trimmed early losses with 10-30Y yields up +1.9-2.8bp with the 10Y most offered.
  • Near-term support in the 10Y stands at 10.20 & 10.80 in the 30Y.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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