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USD/ZAR Pierces Thursday's High Amid Thinner Liquidity

ZAR

USD/ZAR creeps higher amid holiday-thinned liquidity, piercing yesterday's highs amid negative risk sentiment. South African Rand is one of the worst performers in the EMEA space, with the news that Eskom ramped up power cuts likely adding pressure to the currency.

  • The rate last deals at ZAR17.6645, up 1,685 pips on the day. A clearance of Dec 13 high of ZAR17.7601 would shift focus to the 61.8% retracement of the Oct 13 - Nov 30 downleg/Dec 1 high at ZAR17.9384/17.9596. Conversely, bears look for losses past Nov 30 low of ZAR16.8980.
  • The aggregate BBG Commodity Index sits almost 1% lower on the day, with the commodity complex coming under pressure from broader risk aversion. The precious metals subindex has shed ~0.7%, printing its worst levels in more than a week.

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