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USD/ZAR Afloat Despite Strong Gains For Gold

ZAR

Weaker than expected U.S. data (JOLTS job openings, factory orders) have applied pressure to the greenback, helping USD/ZAR stay in positive territory after the rate reversed its earlier losses. It last trades at ZAR17.8722, up 230 pips on the day, refusing to ease off despite a decent upswing in gold prices.

  • Local-currency bond yield curve has twist flattened, yield last sit +3.1bp to -3.0bp. The FTSE/JSE Africa All Share Index has added ~1%, printing its best levels since Mar 10.
  • The aggregate BBG Commodity Index is little changed, but the precious metals subindex has soared ~2.5% to fresh cyclical highs.

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