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USD/ZAR Eyes CPI as SARB Touts a Balanced Outlook

SOUTH AFRICA
  • USD/ZAR opens lower as some tentative USD selling helps price action pull away from 14.35 resistance.
  • Commodities also providing some support to ZAR: gold +0.45%, Platinum +0.99%.
  • Focus today on domestic CPI expected to lift slightly to 3.3%, but remain mostly subdued.
  • Recent comments from SARB Gov Kganyago regarding a balanced inflation outlook providing the SARB with space to remain accommodative were encouraging, while peers Russia & Turkey struggle with acute overshooting risks.
  • A softer CPI print today (as expected by some sell-side institutions) would likely reinforce the likelihood of a protracted hold on SARB policy.
  • USD/ZAR remains pegged within a consolidation pattern between 14.1875-14.3398, awaiting a breakout on either side to establish a more decisive near-term direction.
  • Intraday Sup1: 14.1879, Sup2: 14.1536, Res1: 14.3398, Res2: 14.4904
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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