Free Trial

Upbeat Commodities Support ZAR; $ Risks Not Yet Gone

SOUTH AFRICA
  • USD/ZAR tracking USD/CNH to retrace an early push lower towards 14.80 on an upbeat APAC session and softer greenback.
  • Commodities continue to shine with gold +0.61% & platinum 1.65%, adding support to ZAR.
  • Yesterday's news that SA halted the rollout from its biggest vaccine producer, dampened sentiment slightly, but it seems new plans regarding Sputnik V could be on the cards.
  • Price action remains choppy within the 15.10-14,80 band as the cross pushes for a more decisive direction.
  • More sustained $ weakness and favourable risk sentiment has given the cross a firmer downside bias, but with $ net short positioning still very one-sided & inverted H&S on the DXY not fully rejected, the tail risk of an unwind still remains a threat.
  • Cross needs to clear Sup1: 14.7855 to make a more consolidated move lower towards sup2: 14.5086, Res1: 14.9078, Res2: 15.00
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

To read the full story

Close

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.