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USD/ZAR Rejects the 15.50 Handle Once Again as Commodities Gain

  • USD/ZAR trades -0.12% lower this morning, tracking early price action in the BBDXY.
  • The cross continues to evade a decisive push above the 15.50 mark and its 50 & 100dmas with rising terms of trade keeping the currency supported.
  • Expectations for further SARB tightening will also be adding to ZAR support on the back of surging oil/natgas prices – adding risks to the SARB’s near and medium-term inflation forecasts. US PMI & ISM data will be eyed today ahead of NFPs tomorrow.
  • Powell remained firm on the Fed’s commitment to a +25bp hike in March, despite Ukraine risks, but also kept the 50bp option on the table in case inflation developed above forecasts.
  • USD/ZAR will continue to trade in line with global risk sentiment and commodity prices in the near-term, and remains caught within the 15.00-15.60 range, pending a more decisive breakout.
  • Intraday Sup1: 15.2633, Sup2: 15.2155, Sup3: 15.1431, Res1: 15.4435, Res2: 15.4902
  • 9x12 FRA-Jiba3m Spread

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

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