MNI China Daily Summary: Thursday, March 13

MNI BRIEF: China Has Been In Communication With U.S. On Trade

MNI BRIEF: China To Enhance Customs Clearance

MNI BRIEF: China Consumer Satisfaction Up

MNI: PBOC Net Drains CNY68.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.1728 Thurs; -0.64% Y/Y

MNI: US FEB FINAL DEMAND PPI +0.0%, EX FOOD, ENERGY -0.1%

MNI: US JOBLESS CLAIMS -2K TO 220K IN MAR 08 WK

MNI: CANADIAN JAN BUILDING PERMITS -3.2% MOM

GERMANY: Union/SPD Migration Alignment After Turmoil Threatened Debt Deal (BILD)

GERMANY: Official Interim Election Results Tilt Towards Missing BSW & FDP

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ZAR: Rand Edges Lower Amid Budget Turmoil

ZAR
EM BulletBulletEmerging Market News

USD/ZAR consolidates yesterday's gains, last dealing at 18.3760, with an uptick in the BBDXY Index helping push the rate higher. The rand came under pressure yesterday as Finance Minister Godongwana delivered the 2025 Budget without the support of coalition partners, setting the scene for a heated debate in parliament and raising questions about the future of the governing coalition.

  • Bulls look for gains towards 18.7246, the high print of Feb 28. Meanwhile, bears look for a decline towards 17.9992, the 76.4% retracement of the upleg between Dec 12 - Jan 13.
  • Godongwana scaled back his tax hike plan and proposed raising the VAT rate by 0.5pp this year and another 0.5pp next year but the Democratic Alliance insisted that they could not back any tax increases.
  • The Finance Minister said today that South Africa does not have a budget problem but a political problem and accused the DA of politicking.
  • The aggregate BBG Commodity Index has added 0.1% and the precious metals subindex is barely changed on the session. Gold has added ~$8.6/oz this morning.
  • SAGB yields sit marginally higher across the curve, with South Africa's 5-year and 10-year breakeven inflation rates last seen at 4.65% and 5.57% respectively.
  • South Africa's January mining data will be released at 09:30GMT/11:30SAST, with manufacturing data coming up at 11:00GMT/13:00SAST.
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USD/ZAR consolidates yesterday's gains, last dealing at 18.3760, with an uptick in the BBDXY Index helping push the rate higher. The rand came under pressure yesterday as Finance Minister Godongwana delivered the 2025 Budget without the support of coalition partners, setting the scene for a heated debate in parliament and raising questions about the future of the governing coalition.

  • Bulls look for gains towards 18.7246, the high print of Feb 28. Meanwhile, bears look for a decline towards 17.9992, the 76.4% retracement of the upleg between Dec 12 - Jan 13.
  • Godongwana scaled back his tax hike plan and proposed raising the VAT rate by 0.5pp this year and another 0.5pp next year but the Democratic Alliance insisted that they could not back any tax increases.
  • The Finance Minister said today that South Africa does not have a budget problem but a political problem and accused the DA of politicking.
  • The aggregate BBG Commodity Index has added 0.1% and the precious metals subindex is barely changed on the session. Gold has added ~$8.6/oz this morning.
  • SAGB yields sit marginally higher across the curve, with South Africa's 5-year and 10-year breakeven inflation rates last seen at 4.65% and 5.57% respectively.
  • South Africa's January mining data will be released at 09:30GMT/11:30SAST, with manufacturing data coming up at 11:00GMT/13:00SAST.