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Rand Turns Bid Amid Firmer Precious Metals

ZAR

Selling pressure hit spot USD/ZAR as the EMEA morning progressed, with the pair dipping firmly through the neckline of a recent double bottom pattern, which may invalidate this bullish formation. The rate last deals at 18.6557, down 1,234 pips on the session, with the next layer of support coming in at 18.1117.

  • The rand has edged ahead of its EMEA peers today but remains in the red on a monthly basis, bucking November's appreciation trend in the EM FX space (JP Morgan EMCI Index +2.35%).
  • Positive headlines surrounding Eskom (two-notch credit rating upgrade, optimistic comments on the outlook) may have lent some support to the rand, alongside a leap higher in a gauge of precious metals strength.

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