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USD/ZAR Bounces Off 50% Fib of 14 May - & June Range, Factional Issues Brew

SOUTH AFRICA
  • USD/ZAR drifts lower at the open, tracking early weakness in the BBDXY and moderate strength in CNH.
  • Price action failed to move above 13.80 in yesterday's session, pausing at the 50% fib level of the 14 May-7 June range.
  • Covid cases slipping slightly back down towards 5k, having peaked at 9,200 last week – but experts warning cold weather may exacerbate the veracity of the third wave.
  • Factional issues within the ANC return after going quiet for a few weeks, with Magahsule attempting to suspend the President again ahead of his court case vs the ANC next week.
  • Murmurings of nationwide strikes over wage negotiations also making it back onto the local scene, which will be monitored into next week.
  • Focus for the remainder of the week turns to the FOMC.
  • Commodities continue to trade mixed: gold +0.10%, platinum -0.12%.
  • Intraday Sup1: 13.7081, Sup2: 13.6063, Res1: 13.8163, Res2: 13.8573
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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