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USD/ZAR Faces 16.00 Hurdle as US CPI Approaches

SOUTH AFRICA
  • USD/ZAR trades -0.19% lower this morning, mirroring early weakness in the BBDXY as more positive risk sentiment filters through from APAC as the covid situation shows tentative signs of improvement on the ground.
  • Markets will be watching China’s next moves on its lockdown policy closely for a reduction in risks to growth expectations – especially for commodity exporting nations like SA.
  • The cross pulled back from 16.20 yesterday as precious metals gained and the greenback slipped, but now faces support at the 16.00 handle.
  • With limited data on the agenda, the focus will be on USD-side moves following today’s CPI data.
  • 1x4 FRA-Jiba3m spreads have inched higher ahead of next week’s SARB standing at +47.2bp, while 3x6 FRAs have inched lower to +99bp.
  • Intraday Sup1: 15.9593, Sup2: 15.8748, Res1: 16.2064, Res2: 16.2706

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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