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USD/ZAR Rips Lower as Risk on Fuels a Test of 13.50 Support

SOUTH AFRICA
  • USD/ZAR traded heavily in yesterday's session, making an impressive run down to 13.5116 on the back of sustained USD weakness.
  • ZAR remains a key brightspot in episodes of risk-on and hunt for yield, given strong fundamentals, improved fiscal outlook and relatively quiet local scene vs peers Russia & Turkey.
  • Covid cases picked up above the 5k mark yesterday in a notable uptick, but the vaccination drive also seems to be picking up at a notable clip, despite a slow start.
  • Wage negotiations remain deadlocked and talk of strike action is brewing among the larger unions.
  • Price action has now moved firmly into oversold territory on the daily chart, with the RSI now at 24.64.
  • Intraday Sup1: 14.50, Sup2: 13.4009, Res1: 13.5599, Res2: 13.6780
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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