News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
USD/JPY
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/SyroornFf5
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4QhQGQ6 https://t.co/KrMcyZZqO7
  • The Reserve Bank of Australia (RBA) rate decision may spark a bullish reaction in $AUDUSD as the central bank is expected to retain the current course for monetary policy. Get your market update from @DavidJSong here: https://t.co/WbcR9ER0qT https://t.co/TynsqCtPQ6
  • Gold has broken below a critical support confluence we’ve been tracking for months now and the risk remains for further losses while below this threshold in the weeks ahead. Get your $XAUUSD market update from @MBForex here:https://t.co/xgN2obaIWR https://t.co/H71ufPNkPg
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZFxlk https://t.co/Evr5KgUjVo
  • $GBPUSD corrects from stretched valuations, however, positioning clear is likely to entice dip-buyers. Get your market update from @JMcQueenFX here: https://t.co/sfFdBx9pN6 https://t.co/j6nnry65SW
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/oQrOpYINOj
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/LSVPlus0vv
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/rPd6B5KzuI
  • Time-cycle analysis suggests that the Japanese Yen could slide significantly lower against its major counterparts. Key levels for AUD/JPY, EUR/JPY and GBP/JPY. Get your market update from @DanielGMoss here:https://t.co/WPq4Z9zzEw https://t.co/VzVLrBbL9q
USD/ZAR Stalls as Mining Production Rebounds

USD/ZAR Stalls as Mining Production Rebounds

Walker England, Kara Dailey,

Talking Points:

  • Mining Production increased 5.3% (YoY) in September
  • Retail Sales and Industrial Production were also up 2.3% and 8.0% respectively
  • USD/ZAR stalls under resistance

Of late South Africa has been characterized by sluggish economic growth and rising inflation. Despite their full year GDP growth rate being cut from 2.4% to 1.4%, they remain under increasing pressure to raise interest rates. However, at their upcoming November 20th meeting the reserve bank will likely hold rates steady at 5.75%, with September’s mining production figures lending reason.

Preliminary production results show mining increased in September by 5.3% (YoY), recording the first positive growth rate since May. In rebounding from August’s -9.2%, iron ore was the largest contributor advancing 5.7 percentage points followed by manganese ore, coal and diamonds. Gold, which accounts for roughly 7% of world production, also increased at one percent. The largest drawback came from Platinum Group Metals (PGMs) which declined 4.1%.

With a positive correlation to production (0.43), mineral sales will likely see a rise in September as they, like production, were down 10.7% in August. The most significant negative growth rates were recorded for iron ore (-40.7%) and PGMs (-31.2%) whose contributing percentage points were -6.6 and -8.2 respectively.

In addition to a confirmed rebound in production and likely rebound in sales, South Africa also saw a jump in September retail sales (+2.3%) as well as industrial production (+8.0%). The largest contribution to these sectors came from a rise in motor vehicle manufacturing (+5.8%) which accounts for 12% of the country’s exports.

Following these positive economic developments, the USD/ZAR remains stalled under resistance after a 9,135 pip rally.

USD/ZAR Daily Chart

dailyfx USDZAR daily chart.

Chart Created by Walker England Using MarketScope2.0

Change in Mining Production Relative to Sales

USD/ZAR Stalls as Mining Production Rebounds

Data Sourced from Statistics South Africa

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES