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Rand Outperforms EMEA Peers Amid Moderation Of Power Cuts, Improvement In M'fing PMI

ZAR

Spot USD/ZAR last deals at 18.7435, around 1,100 pips lower on the day, amid some reprieve on the loadshedding front and better-than-expected manufacturing PMI data. Broad-based greenback underperformance has facilitated the pair's move lower, leading to the unwinding of almost all of its gains registered yesterday.

  • Technically, bears continue to look for a move through Nov 15 low of 18.1117, while bulls set their sights on Oct 26 high of 19.2710.
  • Loadshedding has been eased into the weekend, with a suspension of power cuts expected on Sunday, as generation capacity recovered somewhat.
  • South Africa's Absa Manufacturing PMI improved to 48.2 in November from 45.4 prior, printing comfortably above the 45.0 consensus forecast.
  • The commodity space is slightly weaker but precious metals have firmed, with a relevant BBG subindex rising 0.3% to new cyclical highs.

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