Rand Garners Strength, S. African Retail Sales On Tap

Spot USD/ZAR has been under pressure alongside US Tsy yields this morning, testing the 19.00 figure. The rate last deals at 19.0330, down ~1,160 pips on the day, and a move through the aforesaid round figure would bring the 50-EMA at 18.5314 into play. On the flip side, the 76.4% retracement of the Jun 1 - Jul 27 downleg provides the initial bullish target at 19.3301.

• From a cross-asset perspective, SAGB yields are slightly lower across the curve. The commodity complex has stabilised, with a BBG gauge of its strength adding ~0.3% this morning. The precious metals subindex sits ~0.2% higher on the day.
• Seven opposition parties kick off their national congress today as they look to challenge the African National Congress in the 2024 elections. With the ruling party uncertain of keeping its majority in parliament, the polls will attract growing attention in the coming months.
• South Africa's retail sales will be published at 12:00BST/13:00SAST.