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USD/ZAR Holds 14.35, Union Strikes & Political Rumblings in the Pipeline

SOUTH AFRICA
  • USD/ZAR trades mostly flat around the open, having pulled away from the sticky 14.35 level once again in yesterday's session.
  • For now, the cross is mostly rangebound, tracking choppy price action in the BBDXY.
  • Union strikes over wage disputes with government in focus today, with officials remaining firm on the budget's fiscal consolidation promises so far.
  • We're likely to see this battle ramp up in the coming weeks/months and represents a potential long-term structural shift in Govt away from the multi-year trend of placating unions with unaffordable above-CPI wage increases – which would be an unequivocal positive if govt can hold its ground.
  • Political rumblings likely to get louder next week ahead of key meetings with Ramaphsoa & Magashule. Intraday sup1: 14.1879, Sup2: 14.1563, Res1: 14.3398, Res2: 14.3833
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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