Asian equity markets failed to sustain the positive tone from Wall Street where all major indices notched gains as technology sector outperformed for another day.
USD/ZAR: stabilization planned
The South African rand has been following a downward trajectory since its peak in early April. The spike at the beginning of June did not change this trend. It aims at the channel within 15.82 – 16.46: this is the likely zone to where the USD/ZAR will drop to pick up its pre-virus trajectory. Given the fact that the latter trajectory has been strategically bullish, we are likely to see a dip into the mentioned channel, but after that, the USD’s mild appreciation against ZAR will take place again. For this reason, go bearish in the short-term, then moderately bullish in the mid-term.
US stocks are set to weaken at the open today, consolidating after gains in the previous session, with investors wary amid few signs of progress over the next virus relief bill.
Asian equity markets traded mixed amid a lack of fresh catalysts and with the region failing to take advantage of the mild tailwinds from Wall Street.
US stocks are set to open lower Friday, with investors worry over rising tensions between the US and China, deadlock over the next virus relief bill and possible disappointments from the key monthly employment report.
The pair was falling down amid the waning US dollar. However, the situation changed this month.
Dollar continues to keep firmer on the day, all eyes on the US jobs report later.