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ZAR: Rand Corrects Yesterday's Sell-Off But USD/ZAR Stays Above 18.0

ZAR
EM BulletBulletEmerging Market News

Spot USD/ZAR stays above the 18.0 round figure despite correcting yesterday's rally and last deals at 18.0779. The BBDXY Index sits marginally above neutral levels but is struggling to break out of this week's trading range. Headline flow out of South Africa has been limited, offering little in the way of notable catalysts for rand price action. From a technical standpoint, the 200-DMA (18.1717) has kept a lid on USD/ZAR movements and a break here would open up Nov 14 high of 18.3951. Conversely, bears look for losses past Dec 12 low of 17.6191 and towards Nov 7 low of 17.2711.

  • SAGB yields advanced across the curve, with South Africa's 10-year breakeven inflation rate rallying to 5.39%, the highest level in more than a month.
  • The composite BBG Commodity Index and the precious metals subindex are little changed as we type. Gold trades ~$1.6/oz. higher on the session.
  • In the absence of domestic event risk, participants look to the Fed's monetary policy decision due later today.
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Spot USD/ZAR stays above the 18.0 round figure despite correcting yesterday's rally and last deals at 18.0779. The BBDXY Index sits marginally above neutral levels but is struggling to break out of this week's trading range. Headline flow out of South Africa has been limited, offering little in the way of notable catalysts for rand price action. From a technical standpoint, the 200-DMA (18.1717) has kept a lid on USD/ZAR movements and a break here would open up Nov 14 high of 18.3951. Conversely, bears look for losses past Dec 12 low of 17.6191 and towards Nov 7 low of 17.2711.

  • SAGB yields advanced across the curve, with South Africa's 10-year breakeven inflation rate rallying to 5.39%, the highest level in more than a month.
  • The composite BBG Commodity Index and the precious metals subindex are little changed as we type. Gold trades ~$1.6/oz. higher on the session.
  • In the absence of domestic event risk, participants look to the Fed's monetary policy decision due later today.