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Feb Budget Woes Brewing in the Background as ZAR focuses on Firmer Commodities & CNY

SOUTH AFRICA
  • USD/ZAR opens lower after a good mid-session move lower on the back of increased $ short positioning & lower UST yields.
  • Upbeat commodities and a firmer fixing for USD/CNY supporting USD/ZAR downside for now
  • but more concerns about a challenging Feb budget starting to appear which could handbrake ZAR optimism into month-end.
  • For now, however, markets content focusing on $-side factors - which seem to be biased to the downside today.
  • A move below 15.21, opens up 15.0855 support & 50% fib drawn off 04 Jan low, followed by 15.00 round number support.
  • US CPI is the big ticket item today, expected to show a slight pickup at 1.3%.
  • Res1: 15.2903, Res2: 15.4606.
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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