Rand Holds Steady Today Set For Third Weekly Loss

Spot USD/ZAR is little changed at 19.0725 as we type, holding a tight range so far. Bulls set their sights on 19.3301, the 76.4% retracement of the Jun 1 - Jul 27 downleg. The 50-EMA provides the initial layer of support at 18.5779.

• The PBOC ramped up its pushback against redback depreciation, delivering the strongest USD/CNY mid-point fixing on record. Gains for offshore yuan were short-lived, with the market still showing negative sentiment towards China's growth outlook.
• A string of red flags in Chinese data coupled with a stronger greenback have weighed on the rand recently. As a reminder, China is the top importer of South African commodities.
• SAGB yields are slightly higher across the curve, with 10-year breakeven inflation rate last seen at 6.81%. The BBG Commodity Index has now unwound its earlier gains, while the precious metals subindex sits ~0.35% higher on the day.
• Looking ahead, participants away the BRICS leaders' summit next week.