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USD/ZAR Pressures its 200dma as Risk Conditions Improve, Bearish Engulfing Candle Emerges

  • USD/ZAR trades +0.64% higher this morning, mirroring early upside in the BBDXY as the index trims yesterday’s losses.
  • The cross fell -1.96% yesterday on the back of broad-based risk on, despite a softening in commodity prices from Tuesday’s highs.
  • Price action failed to breach the 15.00 handle vs the USD, but ZAR continued to outperform vs the likes of GBP & EUR.
  • Risks surrounding Eskom running out of diesel reserves or needing more fiscal support from Govt are a notable concern, however, as the country faces stage 4 load-shedding.
  • Additionally, comments from Ramaphosa rival Magashule that the National Working Committee is becoming more influential than the NEC is an interesting political development as Ramaphosa starts positioning for the December ANC National Elective Conference.
  • USD/ZAR remains pegged between the 100/50 & 200dmas at present with yesterday’s price action forming a large bearish engulfing candle up to the 200dma.
  • Intraday Sup1: 14.9935, Sup2: 14.88, Res1: 15.1431, Res2: 15.2155

MNI London Bureau | +44 020-3983-7894 |
MNI London Bureau | +44 020-3983-7894 |

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