USD/ZAR gains more than 1% even after Zuma survives confidence vote

The USD/ZAR pair gathered momentum and jumped to a fresh session high at 13.4086 after President Zuma survived the no confidence vote in the South African Parliament. As of writing, the pair was trading at 13.3970, up 1.35% on the day.

Although this development seems to be a positive development for Zuma, the fact that 51 members of his party voted against him suggests that the political instability is likely to continue in the country. The vote ended with 177 'yes' and 198 'no' votes. Zuma's party has a total of 249 seats in the Parliament.

• South African Parliament votes in against no-confidence motion on President Zuma

Technical outlook

13.4900 (Aug. 4 high) could be seen as the initial target on the upside ahead of 13.5720 (Jul. 12 high) and 13.6350 (Jul. 11 high). On the downside, supports could be seen at 13.1700 (Aug. 7 low), 13.1120 (daily low) and 13.0000 (psychological level).