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ZAR: Extension Higher in Greenback Keeps USD/ZAR Pinned to Weekly High

ZAR
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Rand weakness likely has been a function of greenback strength today, with gains of around 0.25% for USD/ZAR broadly matching that of the USD index. A sell-off in crude (evident in a >3% decline in WTI futures) seems to have had little impact on the rand, with spot gold resilient to weakness in the wider commodities space.

  • From a technical perspective, short-term gains for USD/ZAR are considered corrective, and a bear threat remains present. The break lower in August confirmed a resumption of the downtrend and maintains the price sequence of lower-lows and lower-highs. 17.5713, the Jul 28 ‘23 low, marks support to watch. Initial resistance remains some way off at 18.0705, the 50-day EMA.
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Rand weakness likely has been a function of greenback strength today, with gains of around 0.25% for USD/ZAR broadly matching that of the USD index. A sell-off in crude (evident in a >3% decline in WTI futures) seems to have had little impact on the rand, with spot gold resilient to weakness in the wider commodities space.

  • From a technical perspective, short-term gains for USD/ZAR are considered corrective, and a bear threat remains present. The break lower in August confirmed a resumption of the downtrend and maintains the price sequence of lower-lows and lower-highs. 17.5713, the Jul 28 ‘23 low, marks support to watch. Initial resistance remains some way off at 18.0705, the 50-day EMA.