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PBoC Comments Spook ZAR, Mining Production Set to Rise Y/Y

SOUTH AFRICA
  • USD/ZAR trades +0.50% higher this morning, taking a leg higher in line with USD/CNH after the PBoC said it would correct currency deviations.
  • The cross has been struggling for bearish traction around the 100dma, with buyers defending the level.
  • Mining production data is expected to have shown an improvement y/y in November. But overall, performance in the sector has been harmed by heightened electricity constraints.
  • The main weekly focus remains on CPI tomorrow, however, but is not expected to accelerate the SARB’s “gradual” tightening cycle at its next meeting (27 Jan).
  • Failure to close below the 100dma may see USD/ZAR reverse higher towards the 50dma at 15.75 – aided by rising UST yields.
  • Intraday Sup1: 15.3663, Sup2: 15.2660, Res1: 15.1530, Res2: 15.577
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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