ZAR: Rand Stable Despite Post-Data Spike in Greenback, Equities

The spike in the greenback and strength across major equities on the back of the slightly lower-than-expected US IJC figures has had only limited impact on USDZAR, which remains contained within the day’s prior ranges and just 0.1% lower at typing. A 1.3% rally in gold has been unable to offer the rand any significant topside momentum.

• Given the narrow ranges today, familiar technical levels for USDZAR remain in play. Resistance to watch lies at 18.6627, the Jul 2 high. While this level was pierced earlier in the week, a clear break is needed to undermine the recent bearish theme and signal scope for a climb towards 19.0054, the Jun 6 high and a key resistance. Support to watch is at 18.1064, the Aug 1 low. A break would be a bearish development.