#BRICS currencies movement for the Week – 6 September 2019
Another GREAT week for the South African Rand, outperforming most emerging market currencies (against USD), after better than expected GDP results on Wednesday:
SA GDP Growth Rate YoY : 0.9% (Expected: 0.8%)
SA GDP Growth Rate QoQ : 3.1% (Expected: 2.4%)
#BRICS currency/USD movements for this week:
Brazil +2.0%
Russia +1.5%
India -0.3%
China +0.6%
South Africa +2.5%
Euro/USD +0.3%
Technically, the ZAR enjoyed the better economic environment this week and broke a very strong support line (bottom of the diagonal parallel channel). It also came very close to reaching my first target at R14.56.
The USDZAR moved out of overbought (oversold) according to the 14-day RSI and still improving. Even with the strong movement this week, it however still don't find itself in oversold territory yet.
Should improvement continue from current levels, support could now be found at the 50-day Moving Average at R14.63. A break and close below these levels, could seek support at the 200-day Moving Average at R14.30. a Close below this level, targeting the main support at R13.85 again.
A return to the Rand's old "naughty ways" will have me monitoring the R15.20 levels with great antipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.
SA GDP Growth Rate YoY : 0.9% (Expected: 0.8%)
SA GDP Growth Rate QoQ : 3.1% (Expected: 2.4%)
#BRICS currency/USD movements for this week:
Brazil +2.0%
Russia +1.5%
India -0.3%
China +0.6%
South Africa +2.5%
Euro/USD +0.3%
Technically, the ZAR enjoyed the better economic environment this week and broke a very strong support line (bottom of the diagonal parallel channel). It also came very close to reaching my first target at R14.56.
The USDZAR moved out of overbought (oversold) according to the 14-day RSI and still improving. Even with the strong movement this week, it however still don't find itself in oversold territory yet.
Should improvement continue from current levels, support could now be found at the 50-day Moving Average at R14.63. A break and close below these levels, could seek support at the 200-day Moving Average at R14.30. a Close below this level, targeting the main support at R13.85 again.
A return to the Rand's old "naughty ways" will have me monitoring the R15.20 levels with great antipation. A break above these levels would place us slap-bang back into the diagonal parallel channel.