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Rand Shows Resilience Despite Escalating Load-Shedding

ZAR

The prospect of further economic stimulus in China has seemingly outweighed domestic South African concerns today, allowing the rand to score gains against all its EMEA peers. Spot USD/ZAR trades at 18.6468, down 1,480 pips on the day as we type, with the pair operating close to Jul 4 low of 18.6121. If this level gives way, bears will look for losses towards Jun 16 low of 18.1250, a key layer of support.

  • Eskom ramped up rolling blackouts and will now alternate between Stages 3 & 4 until further notice. This comes on the back of heightened demand, with South Africa experiencing icy weather conditions.
  • South Africa's seasonally adjusted manufacturing output fell 1.3% M/M, missing expectations of a 0.2% gain.

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