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USD/ZAR Clears 16.00 Support, Focus Remains on $-side Drivers

SOUTH AFRICA
  • USD/ZAR trades -0.25% lower this morning, tracking early selling pressure on the BBDXY following the broad risk aversion that markets experienced following Powell’s remarks.
  • ZAR outperformed in yesterday’s session gaining +1.55% vs the USD to close below 15.90 - forming a bearish engulfing candle on the daily chart.
  • Covid cases continue to accelerate locally with deaths ticking higher, albeit at a slower rate.
  • WHO rejection of blanket travel bans is encouraging for SA’s tourism season, but no countries have moved to reverse bans yet.
  • With limited data on the agenda outside of Absa PMI, today’s focus will be on US ISM data and follow-through on Powell’s hawkish comments yesterday.
  • The BBDXY has given back roughly 70% of its gains made yesterday, but may remain volatile in today’s session.
  • Intraday Sup1: 15.7657, Sup2: 15.6638, Sup3: 15.5777, Res1: 15.9366, 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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