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AUSSIE 10-YEAR TECHS

(Z1) Shallow Bounce

USDCAD TECHS

Trend Needle Still Points North

WHITE HOUSE

Biden Losing Support On COVID-19 Strategy: Poll

AUDUSD TECHS

Slide Accelerates

LATAM

Snapshot: USDMXN Set To Post Highest 2021 Close

EURJPY TECHS

Still Looking For Weakness

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  • USD/ZAR trades -0.20% lower this morning, tracking price action in USD/CNH in early trading after reports of more RRR cuts and even potential rate cuts emerged from the PBoC overnight – providing support to Chinese equities.
  • ZAR continued to firm last week, moving through the 100dma following the substantial NFP miss on Friday which bolstered risk assets and precious metals.
  • Momentum in USD/ZAR still remains bearish, despite the scale of the move (-7.25% since 20 Aug) with pronounced USD weakness, coupled with high ZAR real yields/vol-adjusted carry sustaining the move.
  • SA has a busy week of data ahead with GDP & current account data the main focal points alongside the ECB and US PPI in the latter part of the week.
  • Over the weekend covid cases fell sharply in a promising new trend with restrictions likely to be reduced to level 2 in the near future.
  • However, the release of Zuma on medical grounds is highly controversial and shows major weakness within the ANC.
  • Opposition parties and social groups are up in arms and will continue to be a source of distraction for the embattled ANC.
  • Moreover, with the IEC going ahead with local elections in October, it seems the ANC will lose a substantial amount of support in key metros without even casting a single vote.
  • Intraday Sup1: 14.1989, Sup2: 14.1536, Res1: 14.4098, Res2: 14.5042