The South African Rand has continued to strengthen against the US dollar in the aftermath of President Ramaphosa’s announcement of the economic reconstruction and recover plan, last Thursday.
The decline in USD/ZAR coincides with a weaker dollar as the US gear up for the presidential elections coupled with the everchanging possibility of a completed stimulus deal before voting day. However, the economic calendar next week could disrupt the current momentum depending on how the market receives the Q3 unemployment data and the mid-term budget speech.
USD/ZAR: Technical Levels to Consider
The weekly chart shows USD/ZAR trading comfortably below the 16.50 mark – a key psychological level, approaching the low created in the week of September the 14th. Trading to this level would represent the lowest USD/ZAR print since March this year and therefore, acts as a crucial level to watch if the current long-term, bearish momentum is to continue.