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USD/ZAR Fails to Hold Below 13.70, USD Fighting Back

SOUTH AFRICA
  • USD/ZAR opens higher in line with a firmer greenback, moving back towards 13.18 resistance – mirroring USD/CNH price action.
  • SA continues to suffer from load-shedding (rolling blackouts) woes, with power cuts forecast until Friday.
  • Bonds trading near key supports should be ZAR supportive if we can confirm a break lower, but ZAR remains most vulnerable to shifts in risk sentiment at this juncture.
  • Moves to cut minister benefits and a return to profitability for SABC are both net positives.
  • However, mounting pressure on HealthMin Mkhize to step aside amid corruption investigations risk instability in the vaccine rollout – which appears to be picking up steadily.
  • Virus cases ticking up at 3,614 but not currently at threatening levels. Commodities providing little support to ZAR: gold -0.15%, platinum -0.74%.
  • Intraday Sup1: 13.7675, Sup2: 13.678, Res1: 13.8163, Res2: 13.8573
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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