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USD/ZAR Approaches 15.00 as Rand Remains Vulnerable to Risk-Off

SOUTH AFRICA
  • USD/ZAR trades +0.68% higher this morning, tracking early upside in USD/CNH and the BBDXY as risk-off filters through from the APAC session.
  • ZAR underperformed yesterday as poor China data rattled global risk sentiment, and sent reverberations through commodity currencies.
  • The cross is now approaching the 15.00 handle, having broken last week's highs at 14.9065 and established a more dominant base above the 200dma.
  • Sentiment is still weak in ZAR following the cabinet reshuffle, and seems to be asymmetrically vulnerable at present to risk-off selling with peers RUB & TRY faring better against bouts of USD strength.
  • While the NCCC is expected to discuss and possibly expedite the vaccine rollout to 18-35s by the end of the week, the focus remains on global factors including US data and tomorrow's FOMC minutes.
  • Momentum in USD/ZAR remains bullish with 15.00 and 15.29 becoming the next major topside targets, should risk conditions continue to sour.
  • Intraday sup1: 14.8632, Sup2: 14.7955, Res1: 14.9599, Res2: 15.0309
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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