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China Boosts Trade With Africa; Factional Tensions on the Rise

SOUTH AFRICA
  • Local yields continue to track lower in 2Y & 10Y tenors, buoyed by favourable global risk sentiment and an upside beat to China's Caixin PMIs.
  • 2Y continues to drift towards 4.50, 10Y targets 8.70-8.67.
  • USD/ZAR tracks USD/CNY lower towards the underside of the lateral range held since 21 dec at 14.5610 as China boosts cross-border Yuan settlements and highlights increased trade with Africa for 2021.
  • Move through 14.55 opens up 18 Dec low at 14.5170 and round number support at 14.50, but failure to break lower keeps the cross pegged in its range.
  • Limited local catalysts leave global factors in the driver's seat
  • but with the ANC celebrating its birthday on 8 Jan, factional tensions are expected to rise in the lead up to SG Magashule's court appearance (Feb 19).
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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