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ZAR at the Mercy of Mboweni's Budget, Fiscal Consolidation the Key Focal Point

SOUTH AFRICA
  • USD/ZAR is trading mostly flat this morning following a push lower on the back of Powell's testimony.
  • Focus today is unequivocally on the budget speech, expected to show a tax windfall.
  • Avoidance of extensive taxation and credible plans to achieve fiscal consolidation via targeted expenditure cuts and reprioristaion outlined in October should be ZAR positive today, while more empty promises will be met with concern.
  • Commodities marginally firmer this morning: gold +0.02%, platinum +0.35%, while stocks trade +0.86% after selling off aggressively in yesterday's session.
  • Sup1: 14.5273, Sup2: 14.4167, Res1: 14.6081, Res2: 14.6681
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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