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USDZAR Approaches Key Resistance Area

ZAR
The most recent uptick in the dollar has bolstered upside momentum in USDZAR, which has broken through the day’s earlier highs and last deals around 18.92. Price remains just shy of the key resistance region between the Nov 24 and Nov 30 highs at 18.9570 and 18.9699, respectively. A break above here would strengthen the bullish theme.
  • The pair had traded to as low as 18.7554 earlier in the session, though GDP data revealing below-consensus growth of -0.2% Q/Q (Est: 0%) in Q3 provided an additional tailwind alongside the recovery in the USD index. Sustained weakness in the commodities complex, evidenced by a 0.25% move lower in the Bloomberg precious metals index, may also be weighing on the rand. Looking ahead, current account data provides the highlight on the local slate on Thursday.

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