Fresh data from South Africa show that the Consumer Price Index (CPI) rose 0.3% in inter-month against market expectations of 0.4%. On an annual basis, the CPI came in at 4.1%, versus the expected 4.2%. As a result, USDZAR has moved slightly lower and it now approaches the key support located just below the $14.60 mark.
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For the previous month of August, the CPI came in at 4.3% while the market expected 4.2%. The CPI is in a clear downtrend after it printed 5.2% in December 2018.
Technically, USDZAR bounced off of the important horizontal support near the $14.57 mark yesterday. Together with the ascending trend line, horizontal support creates an important support zone.
The first intraday resistance for the bulls is located around the $14.70 handle, where the 100 DMA also sits. The long-term resistance is located at $15.37, in the context of the 13-month descending trend line.