USDZAR,H4
The South African Statistics Agency Afrika Selatan revealed on Tuesday that the overall unemployment rate rose to 34.4% in Q2 2021. This is a substantial increase from the previous quarter’s 32.4%. As a result, data tracked by Bloomberg. shows that the country has the highest unemployment rate in the world.
Last July, the Reserve Bank of South Africa unanimously voted to keep its benchmark repo rate unchanged at a record low of 3.5%, in line with expectations as the Covid-19 virus and the recent unrest in some areas continued to weigh on the countries outlook.
USDZAR was under pressure for the rest of the overnight session, even after weak South African unemployment rate data. The pair fell to 14.9012, around 3.17% from last week’s high. The decline in USDZAR was also due to the overall risk-on sentiment in the currency market, pushing the USD lower.
The four hour chart shows that USDZAR holds within the 15.0000 band, the median line, having broken the 14.9931 resistance high on June 26. Now, the pair is touching Kumo, after the cross of the Tenkensen and Kinjun sen at the top. A break of the Kumo implies a further decline to test 14.8070 (50.0% FR levels of 14.2209 and 15.3899) or further down to the support at 14.2209. A continuation of the bullish trend will occur when the price moves above the top of 15.3899.
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Adi Phangestu
Regional Market Analyst
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