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USD/ZAR Tests 15.50 Ahead of US CPI, Expected to Rise to 7.0% y/y

SOUTH AFRICA
  • USD/ZAR trades +0.08% higher this morning, mirroring price action in the BBDXY.
  • The cross fell -0.93% in yesterday’s session, driven lower by broad-based risk-on following comments from Powell.
  • ZAR has held up relatively well since the start of the year, gaining +2.75% vs the USD so far.
  • Support at 15.50 seems somewhat sticky, but further risk-on in today’s session following CPI may allow the cross to take the next leg lower towards lateral support and the 100dma in the 15.40-15.28 range.
  • A return to risk-off and USD strength, however, may bring price action back towards the underside of the 50dma (15.73).
  • Intraday Sup1: 15.4730, Sup2: 15.3914, Res1: 15.577, Res2: 15.6638
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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