Rand Edges Higher Despite Disappointing Chinese Growth Data

USD/ZAR is under light pressure and last deals at 18.0424, down ~650 pips on the session. Losses past Jul 13 low of 17.9031 would allow bears to target 17.6993, which limited losses on Mar 31. On the flip side, bulls see the 50-EMA at 18.6261 as their initial target.

• The rand has advanced despite downbeat signals from China overnight, which applied pressure to the yuan. China's Q2 GDP growth was slower than expected, while June economic indicators were a mixed bag.
• The commodity complex has softened, with the composite BBG Commodity Index last ~0.5% lower on the day, while the precious metals subindex sits ~0.4% below neutral levels.
• South Africa's June inflation data will cross the wires on Wednesday, on the eve of the SARB's monetary policy decision. Most analysts expect the central bank to raise the policy rate by 25bp.
• Over the weekend, ANC SecGen Mbalula said that the party has asked the Finance Minister to engage with the SARB on how to contain inflation without further rate hikes.