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ZAR Dials in on GDP & Brewing Political Headwinds

SOUTH AFRICA
  • USD/ZAR opens lower on a slightly softer Greenback after peaking at 15.5726 in yesterday's session.
  • Commodities trading slightly firmer: Gold +0.68%, Platinum +1.08% and T40 dipping slightly -0.21%, amid mixed APAC sentiment.
  • Platinum seeming a bit better supported around $1,100 vs gold looking slightly vulnerable.
  • FI rout yesterday hurt ZAR with the SABO index still showing outflows holding apace, but may start to look a bit more attractive at these valuations once we see a normalisation in Treasury yields/volatility.
  • Local political scene starting to look a bit messier as the factional split in the ANC becomes clearer over ZUMA & PP Mkhwebane – Magahshule starting to impose his will on the party more and Ramaphosa appearing hamstrung.
  • Magahule's 'step aside deadline' (1-2 weeks' time) will be a major pivot point for the party. GDP in focus today, with a better than expected print likely to be ZAR-supportive.
  • Intraday Sup1: 15.3455, Sup2: 15.2279, Res1: 15.5726, Res2: 15.6625
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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