The chart of the ZAR vs USD confirms the continuation of a weakening local currency. With better than expected non-farm payroll numbers on Friday last week, the view that the United States may move quicker to hike rates has seen money flow back to the US Dollar. On a technical view, this has resulted in a break upside of a consolidation patter at R11.80 to the USD and it appears that the upper end of the rising channel will be tested in the months to come. Trends with such gradients that have been in place for long periods, do not quickly reverse, so learning to live with the weaker Rand vs USD is something we are going to have to come to terms with.
