Rand Bid as Monetary Policy Still Accommodative
|South Africa Central Bank Governor Kganyago said monetary policy is still accommodative and inflation is well contained. These comments came after South Africa’s August PMI came in at 49.7 vs 47 expected. USD/ZAR is down 1.9% at the time of this writing at 14.8052, with a low of 14.7495, its lowest level since August 2nd. The pair held horizontal support at 14.7483.
The emerging market currency pair put in a double top during the month of August near 15.49 and broke down from consolidation today below 15.0726. The target for a double top is the height of the consolidation zone added to the breakdown, which in this case is 14.63. This area is also the 50% retracement level from the lows on July 19th to the highs on August 19th. Below that, support comes in at the 61.8% retracement level near 14.45.
The RSI is currently oversold, so the pair may bounce before heading lower. USD/ZAR resistance is now at the breakdown level at 15.0726.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.