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Rand Tops EMEA Pile as USDZAR Losses Exceed 2% This Week

ZAR
The recent downtick in the DXY index has supported the rand, which is the top performer in the EMEA space. While USDZAR is standing above yesterday’s lows at 18.7795, the pair is down 0.65% on the day and 2.1% lower on the week overall. Risk surrounding further escalation in Israeli-Palenstian matters has been a prominent theme in Friday discussions, though the bounce in major equity indices through the NY crossover has supported most EMEA currencies.
  • From a technical perspective, a dip through Sep 20 low of 18.6825 and a sustained break of the 50-day EMA (which has been pierced again today) would mark a bearish development.
  • The rand is likely experiencing an additional tailwind following the data from China overnight. China foreign trade jumped to its highest level this year in September, expanding 5.5% m/m in yuan term and marking the second consecutive monthly gain.
  • Following the formal delay to yesterday's ZAR Sukuk sale from the SA Treasury, MNI have reached out to the SA Treasury to confirm a comment will be issued by the media unit later today. Auction was originally set to take place yesterday, settling on Tuesday next week, with a new auction date yet to be publicised.

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