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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
SOUTH AFRICA
- USD/ZAR trades +0.34% higher this morning, hovering around the 15.00 handle in early trading.
- The cross held a choppy range around Friday's NFP print, closing -0.18% lower on the day for +0.42% weekly gain.
- Price action remains broadly caught in the 14.80-15.20 range, awaiting a breakout to confirm a more decisive near-term direction. Buying pressure seen emerging towards the 50dma at 14.73, but many sell-side analysts see ZAR strengthening towards a year-end target of around 14.25 with fundamentals still relatively robust.
- On the weekly agenda, the focus will be on Chinese/US data and the FOMC minutes as markets look for taper and rates lift off clues from the Fed.
- Chinese data will be especially key for ZAR, given SA's acute dependence on metals imports from EM's largest economy as concerns of a downturn in growth continue to plague sentiment in China.
- Mining/manufacturing and retail sales data will be eyed on the local front, while local election campaigning picks up ahead of the 1 Nov vote.
- Eskom load-shedding remains a concern with emergency reserves dangerously low, but Eskom sees this pressure easing towards the end of the week.
- Intraday Sup1: 14.7955, Sup2: 14.6978, Res1: 15.00, Res2: 15.1367
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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