The ZAR is a bit weaker this week, mainly due to US Dollar strength. Out of all the BRICS countries, the Brazilian Real took the hardest knock, with the Russian Ruble bucking the trend by ending the week in the green.
#BRICS currency/USD movements for this week:
Brazil -3.5% Russia +0.6% India -0.4% China +1.3% South Africa -1.8%
Euro/USD -0.7%
Technically, since the beginning of 2019, the USDZAR developed a nice little parallel channel . Even with this week’s weakness, the ZAR still find itself near the bottom of the support channel. Should the support break, we could see the Rand looking for the next support level around R13.85. Should this support break as well, could see us back to January’s R13.25 levels. If the current support hold, a consolidation around R14.50 seems likely.