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USD/ZAR Teeters Around 14.00 Ahead of US CPI

SOUTH AFRICA
  • USD/ZAR tracks broad USD strength back above the 14.00 handle as markets await US CPI.
  • Patchy risk sentiment has roiled EM FX in the last few days as US equity indices turn lower.
  • Domestic focus is still heavily weighted on internal ANC political rumblings and union wage negotiations, which Fitch has expressed little faith in govt sticking to its 0% promises.
  • As noted above, US CPI is the big-ticket item for EM FX price action today, followed by PPI tomorrow and Retail sales & production data on Friday to close a busy US data week.
  • USD/ZAR needs a comprehensive break below 13.90 to unlock more downside towards next major support at 13.56.
  • Intraday Sup1: 13.9844, Sup2: 13.9326, Res1: 14.0768, Res2: 14.1536
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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