The USDZAR has continued to weaken as the greenback falls against global currencies but a key support level in the pair is close. The greenback has tumbled after a strong September rally with the resurgence of a second stimulus package, which was thought to be a longshot before the election.
President Trump has accepted a revised $1.8 trillion package but the Democrats are still holding out for something closer to their $2.2 trillion deal, which a Trump advisor has said was not needed for its strengthening economy. Stephen Moore said the third-quarter figures could, “…shatter the record.”
The Rand saw a dip today after data showed the South African factory dropped for the fifteenth month with a 10.8% loss compared to 10.2% previously.
Tomorrow sees inflation data released for the U.S. dollar and the expectation is for a print of 1.4% compared to last month’s 1.3%. A higher figure could save the USDZAR from the recent downtrend with traders having to revise their bets on Fed tightening.
USDZAR failed to hold two close above the 50-day moving average and has since fallen back to test the support levels near 16.30. This level has held three times since June and will play a significant role in the next direction for the USDZAR. Price action still favors the downside but a buy signal could arise. The Investing Cube team is currently available to assist with trading in currencies with the Forex Trading Course or through one-to-one coaching.
