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SAGB's Retrace 50%; USD/ZAR at the Mercy of Global Factors

SOUTH AFRICA
  • local yields open lower in line with improved risk sentiment.
  • 10Y trading below 8.80 around the 50% fib at 8.76, 30Y holding marginally above 10.70 support.
  • USD/ZAR continues to track broad risk sentiment, but outperformed regional peers during yesterday's session, closing the breakout gap despite a sharp drop in precious metals.
  • Bearish hammer formed on the daily chart with yesterday's price action.
  • Spot opens higher today, tracking USD/CNY price action as markets digest US stimulus developments.
  • Inflows into SAGBs should support ZAR downside towards 14.50, provided global sentiment remains accommodative.
  • Topside resistance at 14.7691 & 14.8275, RSI now pushed out of oversold territory at 32.34.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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