Rand Corrects Recent Advance

The rand has corrected its recent rally and today sits at the bottom of the EMEA pile, with USD/ZAR last seen at 18.5880, up ~1,210 pips higher on the day. Bulls need a clearance of 19.3301, the 76.4% retracement of the Jun 1 - Jul 27 sell-off, to regain control. On the flip side, bears eye Aug 4 low of 18.3828 for support.

• SAGBs firmed across the curve before trimming some gains, with 10-year breakeven inflation rate last seen at 6.56%. Local FRAs remain under pressure following the release of benign South African CPI data yesterday.
• The aggregate BBG Commodity Index sits ~0.3% lower on the day, holding yesterday's range. The precious metals subindex operates just shy of neutral levels after a strong upswing yesterday.
• Five BRICS leaders have just concluded their press conference to announce the outcomes of the 15th Summit. The key takeaway was an invitation for six nations (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates) to join the bloc from next year.