SOUTH AFRICA: S. Africa Pushes Back Against Trump's Threats
- Several South African political parties rallied behind the government after US President Donald Trump threatened to cut all aid to the country over the recently adopted Expropriation Act. Democratic Alliance (DA) leader John Steenhuisen, whose previous opposition to the bill fuelled a flare-up in tensions between ruling coalition partners, said that Trump's threats were based on a "misconception" about how the legislation works. On the other end of the political spectrum, Economic Freedom Fighters (EFF) leader Julius Malema denounced Trump's comments, adding that his party was on the "doorstep" of the Government of National Unity (GNU), waiting to enter as soon as the African National Congress (ANC) kicks out the DA.
- With Trump's combative comments doing the rounds, Mineral and Petroleum Resources Minister Gwede Mantashe said that South Africa should withhold the exports of minerals to the US if Trump delivers on his threats. Presidency spokesperson Vincent Magwenya quickly clarified that these comments should be "taken in jest" and the government was not considering any such measures, with President Cyril Ramaphosa hoping to hold talks with Trump, although "not with a begging bowl".
- Ramaphosa is expected to attend a joint summit of the Southern African Development Community (SADC) and the East African Community (EAC) this Saturday to discuss the ongoing security crisis in the Democratic Republic of the Congo (DRC). South African peacekeepers remain stranded in the DRC with rapidly depleting resources as Rwandan-backed M23 rebels continue to advance. Rwandan President Paul Kagame is also expected to attend the summit.
- The National Treasury will today sell ZAR1.25bn of 8.25% 2032 bonds, ZAR1.25bn of 8.50% 2037 bonds and ZAR1.25bn of 8.75% 2048 bonds.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGB TECHS: (H5) Returns Lower
- RES 3: 149.55 - High Mar 22 (cont)
- RES 2: 147.74 - High Jan 15 and bull trigger (cont)
- RES 1: 144.48/146.53 - High Nov 11 / High Aug 6
- PRICE: 142.12 @ 15:01 GMT Jan 03
- SUP 1: 141.65 - Low Dec 30
- SUP 2: 141.56 - 1.764 proj of the Aug 6 - Sep 3 - 9 price swing
- SUP 3: 141.05 - 2.000 proj of the Aug 6 - Sep 3 - 9 price swing
Markets slipped on the hawkish Fed and are yet to fully recover, touching 141.65 on the way lower. Medium-term trend signals on the continuation chart continue to point south. A resumption of the trend would pave the way for a move towards 141.56, a Fibonacci projection point on the continuation chart. A stronger recovery would open 144.48, the Nov 11 high. Further out, key resistance is at 146.53, the Aug 6 high (cont).
USDCAD TECHS: Bull Flag Highlights A Clear Uptrend
- RES 4: 1.4669 2.0% 10-dma envelope
- RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4392 @ 15:50 GMT Jan 3
- SUP 1: 1.4336 Low Dec 20
- SUP 2: 1.4307/4232 20-day EMA / Low Dec 17
- SUP 3: 1.4136 50-day EMA
- SUP 4: 1.4011 Low Dec 5
USDCAD is unchanged and bulls remain in the driver’s seat. The latest pause appears to be a flag formation - a bullish continuation signal. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4307, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Southbound
- RES 4: 0.6471 High Dec 9
- RES 3: 0.6408 50-day EMA
- RES 2: 0.6341 High Dec 18
- RES 1: 0.6247/6282 High Dec 30 / 20-day EMA
- PRICE: 0.6204 @ 15:21 GMT Jan 3
- SUP 1: 0.6179 Low Dec 31
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6282, the 20-day EMA.
