The USD/ZAR has retreated today as investors react to the falling US Treasury yields ahead of the South Africa GDP data. The pair is trading at 15.380, which is slightly below yesterday’s 15.5685.
USD/ZAR news: After rallying sharply yesterday, the 10-year yield declined to 1.554% today. Similarly, the 30-year yield has fallen to 2.26% while the 5-year yield has dropped to 0.16%. This performance has led to the strength of the relatively risky emerging market currencies like the South African rand and the Mexican peso.
Later today, the USD/ZAR will react to the latest GDP numbers. Economists expect the data to show that the economy contracted by 4.6% in the quarter. They also see it rising by 5.0% in the quarter after expanding by 66.1% in the third quarter.
The USDZAR price soared to a high of 15.5685 yesterday. Today, the price is trading at 15.38, which is important since January 18, 26, and 28. The price is still above the 25-period and 50-period exponential moving averages (EMA). The Relative Strength Index (RSI) has moved from the overbought level of 70 to the current 56.
Therefore, the pair may continue dropping as traders focus the next support level of 15.20. However, this prediction will be invalidated if the price rises above yesterday’s high of 15.56.
