USD ZAR

USDZAR Currency pair flag

Latest USD ZAR Analysis and Forecasts

Potential Platinum bull market in 2020

platinum

With a bullish start to 2020 for many commodity markets due to the escalation in tensions between Iran and USA, we see potential for the start of the new bull market in platinum. Looking at the chart from a purely technical perspective, a confirmed trend line on the weekly chart has broken, with a solid support zone keeping the price above $750. Final confirmation would require the price to break and close above $1000 level. Fibonacci retracement gives us a long-term target at $1700, the 61.8% level.


platinum chart

On the 4-hour chart we see how buyers were getting stronger with higher lows before a break of the trend line. A potential retest could occur before the break of the $1000 level, providing a better buying opportunity, with improved risk management.

platinum 4 hour chart

Platinum supply

The supply of platinum comes largely from South Africa, roughly, 70% is produced there. It therefore makes the political climate in South Africa a very important factor. For instance, the strikes from workers in 2014 caused a big slump in platinum prices. For this reason, it is also important to keep track of the USDZAR pair, as revenues received by miners are in USD. So USD depreciation can have a negative impact on supply, although the correlation has been somewhat muted for the past 5 years with regards to USDZAR.

Platinum uses

Platinum is largely used in the jewellery industry with many brands making expensive products using platinum.

The automobile industry also uses platinum in its fuel cells and to reduce emissions in diesel and hybrid cars. The recent boom in the electric industry could decrease demand in platinum but so far the use of this metal continues on a stable basis.

platinum uses


It is also, used a lot in laboratory equipment and computer technology like disks, computer chips and other hardware.

January is the month when large investments are put into assets for the year. So, this could be the opportunity to get into the trade with potential to add along the way.


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USD ZAR Currency Converter

Other major currency pairs


BUY - rate is expected to increase, i.e. the first currency gains value against the second currency.
SELL - rate is expected to go down, i.e. the first currency is expected to lose value against the second currency.


USD/ZAR – Live and Historical Rates

The pairing of the USD with the ZAR (South African Rand) is one of a major currency and a non-major one. It is indeed quite obvious that the major is the USD. The resulting pair is not a commodity pair, nor is it a major one. The chart featured on this page depicts the amount of ZAR one needs to buy a USD.

The USD

The USD is the most important currency of the world economy. Used by no fewer than 7 countries other than the US, the greenback is also used for the trading of oil and gold. A total of 23 other countries have their currencies pegged to the USD. As far as trading volumes go, the USD is the top currency in the world. Given that at one point all currencies were indeed pegged to the US, it isn’t really surprising that it is also the most popular reserve currency. Its strength stemming from the monstrous size of the US economy, the USD is exposed to just about every bit of political and economic strife, real or imagined, world-over.

The ZAR

Introduced in 1961, accompanying the birth of the Republic of South Africa, the ZAR used to enjoy a stronger valuation than the USD. Indeed, it wasn’t till 1984 that the strength of the ZAR was sapped by political turmoil and apartheid-related sanctions. The currency hasn’t managed to regain the lost ground since. The ZAR is actually the official currency of the Common Monetary Area, which includes – besides South Africa – Lesotho and Swaziland too. Namibia is another country which uses the ZAR.

USDZAR Analysis

South Africa is one of the world’s top gold producers and gold is priced exclusively in USD. This setup creates a very strong link between the two currencies. Gold prices are therefore a major factor in the evolution of the USD/ZAR .

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