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Free AccessUSD/ZAR Bucks USD Weakness Slightly, Oversold Conditions Weigh
- USD/ZAR trades higher at the open, now back above 13.50 as the USD regains some bullish traction. USD/ZAR diverged slightly from the trend of USD weakness in yesterday's session as price action moves out of oversold territory on the daily.
- Pressure is mounting on Ramaphosa to remove HealthMin Mkhize, that risks disrupting SA's vaccine rollout which has been decidedly slow with only 6,812 jabs administered in the past 24hrs.
- Covid cases have fallen back into the 3k range from 5k, but seem to be slowly ticking up.
- GDP will be the key focus today (exp at -3% y/y vs -4.1% prior & 3.2% QoQ vs 6.3% prior), with analysts seeing scope for an upside surprise on firm commodity prices.
- An upside surprise would likely buoy ZAR & SAGB sentiment ahead of current acc and mining data on Thursday.
- USD/ZAR is still pretty stretched below fair value at 14.50-15.00, with 13.40 the key hurdle to more downside.
- Potential PBoC pressure on CNY appreciation is also a tail risk worth noting for ZAR going forward.
- Intraday Sup1: 13.5111, Sup2: 13.4168, Res1: 13.6780, Res2: 13.7557
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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.