FX:USDZAR U.S. Dollar/South African Rand
With Gold showing some correction after a move and a strong NFP one would have expected the rand to also have a good sized correction in price. However, the rand has strengthened and supported with some returning. The municipal elections have gone down with little incident and with some vote shifts shows that largely the democratic system is in place. This seems to have surprised investors and the rand is running ahead of the Gold Bulls. With the strong NFP and gold's correction in price, I still would expect some correction back to the yearly PP where some structure is indicated. However, the run is set to continue in the next few weeks with a test of the 13Rand/$ level next. The TDI is pointing down and not in over sold region and there is still some room to move. Although the run is going good the Matador sword of a down grade is looming at the end of the run.
Hi invinci, Yes I am expecting some correction back to the structure created by the yearly PP. Possibly to around 14.2. The USD has strengthened due to good NFP results and Gold has corrected last week. However, the Rand has strengthened, so probably due for some correction. As the elections have essentially gone without major incident and shown that the underlying political system is still functioning ok. I think this has surprised some investors drawing money back to the Rand. As to a Monday open I can only guess but think a opening above 13.7 is not unlikely.