- Output and new orders in South Africa’s private sector declined at their sharpest rates in nearly a year as the economy weakened and demand subsided, a survey showed on Friday.
- “The growth outlook for South Africa remains lacklustre as a combination of declining order intakes and falling purchasing activity suggests that the sector is likely to remain stuck in reverse gear,” said Oliver Kolodseike, an economist at Markit.
- Companies surveyed reported a decline in output for the first time this year. South Africa is battling its most serious power supply shortages since 2008 and state-owned power utility Eskom implements frequent rolling power cuts to avoid overwhelming the grid.
- USD/ZAR techs positively aligned, highlighting the overall upside potential. There is scope is for an eventual break above the tenkan line at 12.3575. A daily close below the 12.2325 level will reverse trend.
Resistance Levels:R1: 12.3575 (July 2 high) R2: 12.4100 (June 29 high) R3: 12.4500 (June 17 high) Support Levels:S1: 12.1470 (July 1 low) S2: 12.1180 (June 30 low) S3: 12.0385 (100-DMA)
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