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USD/ZAR Holds Its Choppy Range as FOMC Minutes Dampen Global Risk Sentiment

SOUTH AFRICA
  • USD/ZAR trades +0.20% higher this morning as broad-based risk-off filters through from the APAC session.
  • The cross held a volatile 2.23% range around the FOMC minutes yesterday, closing -0.60% lower following the hawkish post-meeting reaction.
  • As expected the minutes aligned with 3 potential hikes in 2022, highlighting the need for an expedited taper.
  • This dented risk appetite in the Asia session alongside the rout in US tech stocks – which should continue to inform global risk sentiment and the direction of ZAR in today’s session.
  • On the local front, the Zondo report continues to create ripples in local politics and may be the prelude to an interesting battle for political power between warring ANC factions in 2022 ahead of the National Elective Conference in December.
  • USD/ZAR remains choppy withing the 16.10-15.70 range, awaiting a breakout on either side to confirm a more decisive near-term direction.
  • The 50dma is providing decent dynamic support. Intraday Sup1: 15.8099, Sup2: 15.7147, Res1: 16.0373, Res2: 16.1044
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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