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USD/ZAR Tracks CNY Lower Post-Liquidity Data; Global Factors to Dominate

SOUTH AFRICA
  • USD/ZAR tracking USD/CNY lower following China liquidity index data, supported by a softer Greenback & improved risk sentiment.
  • Limited local data/catalysts leaving the cross at the mercy of global factors for the remainder of the week.
  • Local political scene also relatively quiet until year-end, with the exception of a possible surprise NEC meeting to deal with Magahsule that could spur a bit of local positioning again
  • (but seems unlikely at this juncture).
  • Cross broadly rangebound. Res1: 14.6792, Res2: 14.8264, Sup1: 14.5754, Sup2: 14.5170.
  • Support band leading up to round number at 14.50 may be sticky & hard to overcome.
  • RSI trading marginally above oversold (31.29), MACD well below the signal line (-0.258).
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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