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Rand Shows Resilience Despite Escalating Load-Shedding
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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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.