- Missed QoQ GDP hampers rand positive aspects.
- USD/ZAR advances off key assist.
ZAR FUNDAMENTAL BACKDROP
Stats SA have launched Q2 GDP information (see calendar beneath) for 2021 outperforming YoY estimates. The low base final yr displays an distinctive efficiency however relative numbers throughout different nations paints a special image.
SA Q2 GDP (YoY):
The QoQ print missed expectations which is probably going on account of the current civil unrest which brought about many enterprise to droop buying and selling or shut fully. The rand opened buying and selling marginally decrease in opposition to the U.S. dollar this morning with little ensuing from GDP information.
Supply: DailyFX economic calendar
The greenback appears to be steering the USD/ZAR pair at this level however with a dovish slant lingering type the Federal Reserve we now have seen a risk-on growth throughout monetary markets. With none excessive influence U.S. or South African information scheduled this week, this may increasingly possible proceed ceteris paribus. South African GDP is unlikely to immediate tightening by the South African Reserve Financial institution (SARB) any prior to anticipated which might favor USD/ZAR bulls as yr finish approached.
USD/ZAR DAILY CHART
Chart ready by Warren Venketas, IG
The every day USD/ZAR chart exhibits the august swing low at 14.2238 holding as bulls push off this key space of confluence. Trendline resistance (black) will probably be in focus and a every day candle shut above might immediate additional upside for the remainder of the week. Regardless of a bearish crossover unfolding by way of the Exponential Moving Average (EMA) – 20-day EMA crossing beneath 50-day EMA, bulls are profitable the tig of battle at this level. There may very well be hesitancy round trendline resistance which might see costs fall decrease however the Relative Strength Index (RSI) suggests the pair is in pending oversold territory. 14.0000 just isn’t out of the query with none greenback stimuli so warning is warranted. My long-term outlook stays is firmly bullish because the dismal native political and financial panorama endures. The U.S. appears way more optimistic which ought to spark upside in time to return.
— Written by Warren Venketas for DailyFX.com
Contact and comply with Warren on Twitter: @WVenketas