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USD/ZAR Choppiness Around 15.00 Persists As $-Factors Dominate

SOUTH AFRICA
  • USD/ZAR looking shaky after trading choppily around the 15.00 handle, but failing to decisively break 14.90.
  • A bear channel pattern drawn off 28 Jan highs on shorter-term time-frames has been broken to the topside, increasing chances of a move back higher - provided spot moves through 15.0617 resistance.
  • USD/ZAR has been at the mercy of risk-on/off sentiment and trading choppily around the formation of a bullish inverted H&S pattern on the dollar index.
  • Fiscal risks may also start to re-emerge in the lead-up to the Feb budget, with many concerned about increased taxation on an overburdened and shrinking tax base.
  • Yesterday, issuance was set to remain constant for the 2020-21 period as outlined in the October 2020 budget. Sup1: 14.9078, Sup2: 14.77, Res1: 15.0617, Res2: 15.2116
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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