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USD/ZAR Treads Water below 15.80, Political Risks Over Zuma Trial Simmer

SOUTH AFRICA
  • USD/ZAR trades -0.02% lower this morning, mirroring price action in the BBDXY as slightly firmer risk sentiment filters through from the APAC session.
  • The cross fell -0.74% in yesterday’s session in line with gains in SAGBs and signs that the 4th wave may be peaking in the coming weeks, while the rest of the world withered under the prospect of surging infections and potential restrictions.
  • US current account data is the big-ticket item on the agenda today, and Zuma’s trial is broadly expected to be postponed – kicking the can down the road.
  • Political noise following the ruling against his parole has been muted, but could ratchet up, should he be forced to return to prison.
  • Momentum in USD/ZAR remains biased slightly lower with decent support coming in below at 15.6701 & 15.4851 (around the 50dma).
  • Intraday Sup1: 15.7147, Sup2: 15.6638, Res1: 15.8472, Res2: 15.8726
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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