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USDZAR Maintains Upward Bias Amid Renewed Eskom Loadshedding Concerns

ZAR

USDZAR continues to trade with an upward bias overall, despite the most recent downtick amid broader USD weakness , placing the rand at the bottom of the EMEA FX pile as renewed loadshedding concerns provide a headwind to the local currency. Price remains above the 50-day EMA – an average which provided firm resistance earlier this month and limited pre-SARB losses yesterday. That average intersects today at 18.7258. USDZAR also remains clear of key short-term resistance at 18.8057, the Nov 10 high. Bulls will target additional gains toward 19.2710, the Oct 26 high.

  • Eskom announced today that it would be boosting loadshedding to Stage 6 for the entirety of this coming weekend amid a shortage of generation capacity and emergency reserves. See Eskom’s full statement here.
  • Our review of yesterday’s SARB decision can be found here.

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