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Break-Even Rates Hit Multi-Month Lows, Boosting ZAR in Early Trade

SOUTH AFRICA
  • ZAR starting the session solidly, with broad USD weakness helping pressure USD/ZAR to new multi-month lows as the pair looks to confirm a clean break of both the 100-dma and the 50-day EMA pierced last week.
  • Focus is on a trendline support drawn from the Apr 13 low. The line intersects at 17.1411. A break would open 16.9818, the Sep 13 low.
  • Gold prices adding further support, with spot rising through yesterday's highs to the best levels since mid-August and printing the seventh consecutive session of higher highs.
  • Break-even rates extend recent losses, dropping to 6.368% - the lowest since April ahead of next week's SARB decision.

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