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USD/ZAR at the Mercy of Global Factors as Risk Sentiment Sours

SOUTH AFRICA
  • USD/ZAR trades +0.21% higher this morning, tracking early price action in the BBDXY as weaker risk sentiment filters through from the APAC session.
  • The cross closed last week -0.46% lower, having held a choppy 15.80-16.2651 range in a busy week for central banks across the globe.
  • With little data to focus on this week as holiday markets set in, ZAR will likely be driven by global risk factors and Omicron developments into year-end.
  • Some regions in SA are reporting peaks in cases while others continue to rise, so it seems premature to call a peak in infections just yet.
  • However, cases appear to be less severe with hospitals managing the caseload at present.
  • US current account and GDP data will be monitored this week, alongside increased lockdown risks in DM economies causing a drag on global risk sentiment.
  • Levels on either side of the 15.80-16.26 range will be monitored for breakouts in either direction.
  • Intraday Sup1: 15.8726, Sup2: 15.8019, Res1: 15.9742, Res2: 16.0373
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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