MNI China Daily Summary: Thursday, March 28

MNI BRIEF: China Steel Demand Low In Q1

MNI BRIEF: China Sovereign Fund Continues To Purchase ETFs

MNI INTERVIEW: Central Bank Credibility To Be Tested In 2024

MNI BRIEF: Foreign Firms Needed For New Productive Force Drive

MNI BRIEF: China Should Address Overcapacity

Acceleration In Both Belgian and Portuguese Flash HICP

Waning Consumer Confidence Follows Downgrades To Consumption Forecasts

Unexpected Retail Sales Drop Poses Downside Risks To Q1 Growth

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

MNI: Growth Drag From Net Zero Carbon Goal Can Be Offset-OECD

MNI BRIEF: Lawmakers Signal Tough Hearing For BOC's Macklem

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Rand Gains More Traction, USD/ZAR Peeks Under Near-Term Support

ZAR

Spot USD/ZAR had a look under yesterday's low (ZAR18.0969) and key near-term support from Mar 3 low (ZAR18.0825) on its way to a session trough at ZAR18.0420. The rate last operates at ZAR18.0915, with bears setting their sights on the 50-EMA at ZAR17.8616, encouraged by the recent bearish failure swing seen in the RSI chart.

  • There has been little in the way of notable local developments since our previous update, albeit better than forecast mining & industrial output data and the planned reduction in load-shedding over the coming days might be supporting the Rand at the margin.
  • Otherwise, the BBDXY index has now fully reversed its earlier gains, facilitating the pullback in USD/ZAR, with the Rand outperforming all of its EMEA peers save for the HUF, even as precious metals remain on the back foot.
  • USD/ZAR 1-month implied volatility climbed to a new two-month highs today before trimming gains. The move may have occurred in response to fairly hawkish comments from SARB Deputy Governor, who warned against upside risks to the inflation outlook ahead of the Mar 30 rate review.
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