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USD/ZAR Pressures Trendline Support - Powell & Budget In Focus

SOUTH AFRICA
  • USD/ZAR tracks USD/CNH lower at the open, but seems to be losing a bit of traction on a firmer USD while commodities trade mixed: gold +0.17, platinum -0.73%.
  • Focus today on Powell and pre-budget jitters, although the picture is looking slightly better than expected given a revenue windfall and limited scope for aggressive taxation.
  • Sell-side still fairly optimistic on ZAR in the EM space, looking to fade rallies, but with a cautious position-sizing approach given volatility in USTs.
  • Trendline support drawn off the 16 Feb low keeping the cross in a short-term uptrend looks to be under pressure and may see spot pull back to 14.4158 Sup if we see a consolidated move through 14.6081 and risk sentiment remains favourable.
  • Sup1: 14.6081, Sup2: 14.5126, Res1: 14.7158, Res2: 14.7667
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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