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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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Free AccessZAR Shines as Omicron Risks Ease & China RRR Cut Bolsters EM Risk Sentiment
- USD/ZAR trades +0.07% higher this morning, tracking early price action in the BBDXY.
- The cross fell -0.86% in yesterday’s session, consolidating the breakout from the bull channel pattern on the daily chart.
- Although covid cases are rising sharply, hospitals remain far from overwhelmed, and symptoms appear to be mild with limited use of ventilation and health experts not expecting to onerous restrictions from Govt.
- Current Account and mining/manufacturing data will be in focus today with a notable CA surplus contraction expected in 3Q21.
- Outside of domestic data, markets will shift their attention to US CPI due tomorrow which will be monitored closely by the Fed for taper/rates lift-off signals.
- Improves risk sentiment as a result of easing Omicron fears and China’s RRR cut continue to support ZAR sentiment with the currency among the top EM performers this week.
- Near-term momentum remains lower with the USD on the back foot, but the cross has robust support in the 15.40-15.50 range with the 50dma (15.3077) rising towards spot.
- Intraday Sup1: 15.6638, Sup2: 15.4730, Res1: 15.8472, Res2: 15.9366
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.