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USD/ZAR Choppy as US CPI Looms, Markets Eye 14.3966 Support

SOUTH AFRICA
  • USD/ZAR trades mostly flat at the open as choppy trading in the dollar persists.
  • US CPI eyed this afternoon as the primary price action driver across EM.
  • Spiralling debt and risk of collapse in the Road Accident Fund are a concern, but unlikely to move the needle today.
  • A Lack of flexibility in the LNG 'Karpowership SA' deal is also noteworthy, given the length of the deal and poor track record of Govt in procuring a reliable energy source.
  • Nevertheless, the sell side still positive on ZAR prospects going forward – highlighting a potential move towards 14.3966 support as ZAR attracts risk flows from embattled Turkey & Russia.
  • Commodities providing little support to ZAR in recent sessions with weakness in gold and platinum holding.
  • Intraday Sup1: 14.5238, Sup2: 14.4746, Res1: 14.6173, Res2:14.6790
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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