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USD/ZAR Hovers Around 14.90 after Strong Close to Last Week, China Data in Focus

SOUTH AFRICA
  • USD/ZAR trades +0.15% higher this morning, hovering around the 14.90 handle in line with a slightly higher USD/CNH.
  • The cross fell -1.28% on Friday for a second consecutively weaker session as sellers stepped in to consolidate the break below 15.00.
  • Focus today will be on whether price action will break below the 14.80 handle and bring the 50 & 200dmas into play in the 14.60-14.70 zone.
  • With little data on the agenda this week outside of PMI and Electricity production/consumption, the focus will shift to election campaigning and global risk factors – especially on the China front as a core driver of recent ZAR weakness.
  • Both bonds and USD/ZAR have run into firm resistance, but will need to see more favourable risk conditions to confirm a break of their weaker trend.
  • Potential removal from the UK's travel red list is a positive for SA ahead of the main tourism season, but concerns remain over a 4th wave in December as a result of general election campaigning.
  • Intraday Sup1: 14.7955, Sup2: 14.6978, Res1: 14.9957, Res2: 15.0546
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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