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USD/ZAR Marches Lower, Eyeing 14.80-15.00 Ahead of 27 Jan SARB

SOUTH AFRICA
  • USD/ZAR trades -0.25% lower, mirroring price action in USD/CNH.
  • The cross resumed its move lower, consolidating its recent break of the 100dma.
  • Higher CPI, PBoC Support and higher commodity prices have supported ZAR this week, facilitating the 1.22% weekly gain vs the USD.
  • Momentum remains to the downside with the cross yet to reach oversold territory on the RSI.
  • The next major focus will be PPI data and the SARB meeting next week with a +25bp hike expected alongside upgrades to SA’s 2022 average CPI forecast from 4.4% to 5.0-5.3% y/y.
  • the cross remains sensitive to price action in USTs and broad risk sentiment, with the next downside support coming in at 14.80-15.00 with the 200dma rising into this range.
  • Intraday Sup1: 15.0990, Sup2: 15.0222, Res1: 15.2660, Res2: 15.2963
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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