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USD/ZAR Eyes 16.2046 High as Strike Risks Mount in SA

SOUTH AFRICA
  • USD/ZAR trades +0.86% higher this morning in line with a firmer greenback and weak Chinese trade data.
  • The cross pulled back from the 16.20 mark on Friday, but is now probing the highs as we enter a big geopolitical and data-driven week for global markets.
  • On the local front, Union strike action in the gold sector is weighing down major producer Sibanye Stillwater, and alongside Eskom load-shedding, could weigh on economic activity towards the end of Q2.
  • Markets will be watching public sector wage talks for more strike action as unions have tabled their demands for a 10% wage increase vs Govt’s allocation of 1.8% in the Feb budget – making for difficult talks to say the least.
  • Focus is on the prior highs at 16.2064 for the next leg higher towards 16.3385 & 16.50. Intraday Sup1: 16.0338, Sup2: 15.9593, Res1: 16.2064, Res2: 16.3385
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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