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ZAR

Fresh 16-Year Unemployment Rate High Sends USDZAR Higher

    Summary:
  • USDZAR has moved 0.7% higher after the Q2 South African unemployment rate hit 29.1%, a fresh 16-year high, in line with the market expectations.

USDZAR has pushed around 0.7% higher after the South African unemployment rate for the second quarter of 2019 hit 29.1%, a fresh 15-year high. The reported figures are in line with the market expectations, while the unemployment rate for Q1 was reported at 29%.

The unemployment rate has been in steady increase since 2013 when it used to be around 25%. In Q1, the youth unemployment rate was reported at 56.4%.

Meanwhile, USDZAR is currently testing the 200 MA on the hourly chart and more importantly, the 100 DMA.

Downside, a break of $14.50 horizontal support will pave the way for a test of the $14.45 zone, where the key 61.8% Fibonacci retracement of the July 2019 low to August 2019 high and the 200 DMA are located.

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