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USD/ZAR Nears Key Support at 50-day EMA

SOUTH AFRICA
  • ZAR firming further in recent trade, prompting USD/ZAR to drop to the lowest levels since early August and test support at the 50-day EMA of 16.4483. A break below here opens 16.3906 initially as well as 16.1969 - the 38.2% retracement of the Apr'22 - Jul'22 upleg.
  • Today's SACCI business confidence index has proved supportive, with the figure rising to the highest level since March, with the report specifically flagging surging new vehicle sales as a strong sign of medium-term investment.
  • Tourism also provided a boon for the index, with tourist accommodation income rising 87% on a Y/Y basis.
  • Today's US CPI release provides the near-term risk (Bullard's podcast with MNI out yesterday was decidedly hawkish on rates) but markets also watch the retail sales data out on August 17th for the next clue on whether SA will meet the SARB's 2022 target of 2%.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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