During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...
Greatest Sale of South African Rand
2021-09-16 • Updated
USD/ZAR is mainly driven by the US dollar, that’s why the US economic data is highly impactful. The US has published strong retail sales for August. It pleasantly surprised investors as they were concerned that consumers would limit their purchases amid the spread of the Delta virus strain. However, retail sales posted a gain!
|
Actual |
Forecast |
Core Retail Sales m/m |
1.8% |
-0.1% |
Retail Sales m/m |
0.7% |
-0.7% |
In comparison, South Africa's July retail sales (the freshest data so far) revealed a significant -11.2% year-on-year, versus market expectations for -2.7%. Such a huge drop was caused by the jailing of former president Jacob Zuma, which lead to the escalation of civil unrest.
Technical outlook
USD/ZAR has been rising at a quite fast pace for the last three days. It has even broken through all three moving averages: 50-, 100-, and 200-day. The growth has been too quick though, we might expect a retracement (correction) to the support level of 14.50. However, the rally may continue till the price reaches the highs of early August at 14.80. The breakout above this resistance level will lead the pair to the psychological mark of 15.00.
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Canadian retail sales showed a slight rebound in February, rising by 0.1% after a 0.3% drop in January. However, this failed to fully offset the steeper decline earlier in the year, suggesting a weakening momentum in consumer spending. The increase in February was driven by gains in sectors such as sporting goods, hobby retailers, and building materials. Despite the...
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...