November 23, OctaFX – The South African Reserve Bank hiked interest rates this week, causing the South African rand currency to spike against a basket of currencies.
South African interest rate increases
The SARB increased rates 0.25 per cent, bring the South African interest rate to 6.75 per cent, in a move which was not expected by most economists after the SARB recently downgraded inflation forecasts.
The USDZAR pair has been under pressure this year, due to political uncertainty in South Africa and the fast pace of interest rate rises in the United States.
USDZAR technical outlook
- The USDZAR pair is bearish below the 14.00 level, key support is found at the 13.50 and 13.00 levels.
- If the USDZAR pair trades above the 14.00 level, key resistance is found at the 14.50 and 14.90 levels.
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