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USD/ZAR Holds Below its 100dma as Fed & SARB Meetings Approach

SOUTH AFRICA
  • USD/ZAR trades +0.25% higher this morning, tracking early buying pressure on the BBDXY.
  • The cross eked out a -0.14% decline yesterday amid shaky global risk sentiment surrounding the Russia-West crisis, providing safe haven support to the greenback.
  • Today’s focus will be on the FOMC where markets are expecting Powell to signal the first +25bp hike in March.
  • Anything short of this signal may be interpreted as relatively dovish, but attention will also be on the possibility of an earlier conclusion to tapering for potential hawkish risks.
  • This should dominate price action in USD/ZAR, which remains sensitive to fluctuations in global risk sentiment.
  • Sellers managed to keep the cross below its 100dma (15.3292) to form an inverted hammer candle on the daily chart.
  • Intraday Sup1: 15.1438, Sup2: 15.0674, Res1: 15.3532, Res2: 15.4435
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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