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USD/ZAR Flirts With 16.00 as FOMC Minutes Loom

SOUTH AFRICA
  • USD/ZAR trades -0.05% lower this morning, tracking early selling pressure in the BBDXY.
  • The cross fell -0.15% in yesterday's session after a bumpy ride within the 15.75-15.94 range as idiosyncratic lira volatility, combined with continued USD strength, caused some regional contagion effects.
  • Today's focus will be primarily on the FOMC minutes as markets gauge the possibility of an expedited taper/rates lift-off timeline which has been supporting the USD in recent sessions.
  • Commodity prices continue to slide against the backdrop of a firmer USD with gold and platinum slipping below $1,800 & 1,000/Oz respectively – although the fall in oil prices has buoyed SA's terms of trade on the margin.
  • USD/ZAR continues to be biased higher in a strong USD and risk-off environment, but may need some more inertia to break 16.00 for the next leg towards 16.33.
  • Intraday Sup1: 15.7657, Sup2: 15.7143, Res1: 15.9366, Res2: 16.0841
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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