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Greenback Recovery Weighs on Rand as Local Equities Dip Substantially

ZAR

USDZAR is trading at a fresh intraday high as the renewed uptick in the USD index provides a headwind to the rand. With few domestic drivers in play, global factors remain the key driver for the pair, which has now recorded a near 1.5% bounce from yesterday’s multi-month lows.

  • Nevertheless, the recent break of support at 18.6945, the Oct 18 low, and the recent move through the 50-day EMA, has strengthened the technical bearish theme. The break lower has exposed the 18.00 handle and 17.9434, 76.4% of the Jul 27 - Oct 6 bull phase.
  • Of note, the benchmark JALSH equity index has shed over 2% today following an impressive ~5.2% rally over the four prior sessions. The index has returned below the 50-day EMA having broken above that average last Friday.

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