RAND TALKING POINTS
- South Africa’s producer price index shows no sign of abating.
- The US dollar / South African rand is supported.
USD/ZAR Basic Background
The South African Rand It gave up some of its gains today after the rapid reaction global markets witnessed after the Federal Reserve. the expected 75 bits per second The rate hike received a pessimistic reaction but that doesn’t mean I’m expecting bearish U.S. dollar Especially with recession fears looming. United State Gross domestic product The next release of missed estimates in -0.9% For Q2 which means we are in the ‘Technical Recession‘ distance -1.6% Q1 print. One positive is the decline in the price of core PCE which can be attributed to feed itSevere tightening cycle.
From a South African perspective, higher than expected PPI numbers added to the strength of the South African rand in early trading while the US GDP signaled a slowing US economy adding to the downside pressure on the dollar. Since the rand is closely linked to China, the decline in the US did not lead to risk aversion from ZAR.
Economic calendar for the US dollar / South African rand
source: DailyFX Economic Calendar
Technical Analysis
US dollar / South African rand daily Schedule
The graph was prepared by Warren VenkitasIG
USD / South African Rand daily price movement Shows bears take charge paying about 16.5000 / 50 days EMA (blue) support area. The Relative Strength Index (RSI) It also broke below the 50-intermediate level which indicates increased bearish momentum.
Resistance levels:
- 17.0000
- 20 day EMA (lilac)
Support levels:
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