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USD/ZAR Treads Water around 15.00 as 1m Risk Reversals Tick Higher

SOUTH AFRICA
  • USD/ZAR trades -0.19% lower this morning, tracking early selling pressure in the BBDXY.
  • The cross traded choppily yesterday on the back of the Russian de-escalation that boosted risk sentiment, but saw commodities sell-off sharply – creating whipsawing price action in the 15.00-15.25 range.
  • 1m USD/ZAR risk reversals continue to tick higher as markets get wary of the cross trading towards the mid-to-lower end of the 14.80-15.50 fair value range with yesterday’s price action forming a spinning top candle on the daily chart – suggesting indecision around the 15.00 level with the 200dma at 14.90.
  • Today’s focus will be on US data with industrial production, retail sales and the FOMC minutes due this afternoon/evening.
  • Beyond this, attention is on the budget next week with the improved fiscal outlook buoying demand for SAGBs in the lead-up.
  • Intraday Sup1: 14.9935, Sup2: 14.8884, Res1: 15.2155, Res2: 15.2633
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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