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Higher US Yields Assisting Notable Recovery in USDZAR

ZAR
The sustained move higher for US yields across the session has continued to underpin strength in USDZAR, with the pair 1.55% in the green at typing. The rand is comfortably the weakest currency in the EMEA space as moderate strength in the commodities complex (evidenced by the 0.65% uptick in the Bloomberg Commodity Index) struggles to offer the currency any reprieve.
  • Today’s move higher has not altered the technical picture despite a notable ~2.9% bounce off of Friday’s lows. Pre-Fed levels remain some way off at around 19.00 while initial resistance stands at 18.7325, the 50-day EMA.
  • With little data of note on the local slate for the remainder of this week, and indeed for the remainder of the year, the rand will likely continue to be driven by broader global themes as we approach the holiday period.

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