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USD/ZAR Retains Downside Momentum Ahead of PPI Data

SOUTH AFRICA
  • USD/ZAR opens lower in line with early selling pressure on the greenback.
  • The cross continues to pull lower, supported by gains in the bond market – eyeing the 13.56-13.625 zone to the downside.
  • Pressure for HealthMin Mkhize to step down amid corruption allegations is rising alongside third wave risks as SA remains on the brink of official third wave classification.
  • PPI data will be a key focus today, expected to tick higher to 6.7%.
  • Upside surprises may see selling pressure emerge in 2Y yields.
  • However, in the absence of any majorly higher prints, this should not alter the SARB's broadly accommodative stance with CPI still pegged at or below the mid-point of the range over the medium-term.
  • US data including QoQ GDP & PCE on the agenda for today.
  • Intraday Sup1: 13.7192, Sup2: 13.6016, Res1: 13.8163, Res2: 13.8931
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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