October 04, 2023 14:54 GMT
USDZAR Close to Neutral Levels Having Reached Highest Since June Earlier
Moves in USDZAR today have coincided with broader price action in the DXY index amid few notable domestic catalysts. The pair reached its highest level since early June at the beginning of the session as fresh cycle highs in US10y yields acted as a headwind to most emerging market currencies, though some reprise was offered to risk assets after yields rolled off those levels. The pair last deals 0.10% in the green.
- In addition, weaker precious metals continue to hamper the performance of commodity-tied currencies. The Bloomberg Precious Metals index remains close to its lowest levels since November 2022 while gold has traded lower for the eight consecutive session.
- This week’s gains have reinforced the current technical conditions in USDZAR with the pair having pierced resistance at 19.3368, the Sep 6 high and short-term bull trigger. This confirms a resumption of the uptrend that started Jul 27 and signals scope for a climb towards 19.50 and 19.9204, the Jun 1 high.