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USD/ZAR Continues to Press Below 14.50 as the USD Slides

SOUTH AFRICA
  • USD/ZAR trades -0.39% lower this morning, tracking early selling pressure on the BBDXY to take price action to a new weekly low.
  • The cross fell -0.43% yesterday as downside momentum remained intact below 14.50 with the RSI not quite signalling oversold conditions just yet.
  • Votes of no-confidence in Ramaphosa’s Cabinet failed and his personal vote was delayed with no return date set yet as the ATM party pursues a secret ballot vote.
  • PPI data will be eyed this morning for upside risks to the outlook following last week’s hawkish SARB, and a notably wider Feb trade surplus owing to high commodity prices.
  • Additionally, the deferral of Discovery’s premium increase to October will be a positive development for inflation as a key input in the basket.
  • Russian troop reorientation towards the Southeast remains today’s focus ahead of the next round of talks tomorrow and US NFP data.
  • USD/ZAR downside momentum continues, with 14.3542 & 14.1536 the next notable supports to consider.
  • Intraday Sup1: 14.4020, Sup2: 14.3542, Res1: 15.4848, Res2: 15.5265
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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