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USDZAR Remains Below 50-Day EMA Despite Latest Uptick

ZAR
USDZAR last deals around 0.65% in the green in the wake of the US retail sales data, with the uptick in the dollar and UST yields providing a headwind to broader EM FX as the ‘higher-for-longer’ theme continues to dictate global markets. The pair, nevertheless, remains ~0.6% lower on the week overall and below 18.9299 – where the 50-day EMA intersects today.
  • For now, technical conditions in USDZAR are considered bullish. A more sustained break of the aforementioned support level is needed to signal scope for a deeper retracement and expose 18.3805, the Aug 24 low.
  • Looking ahead, the SARB will release its semi-annual Monetary Policy Review this afternoon at 1530BST/1630 local. CPI data is on the docket tomorrow. A summary of sell-side views will be released shortly.

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