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Rand Holds Tight Range After Monday's Sell-Off

ZAR

Spot USD/ZAR holds a very tight range today in a spell of stabilisation after yesterday's sell-off. The rate last deals at 18.8903, a touch higher on the day, as the greenback is slightly firmer. A clean break above 19.3301, the 76.4% retracement of the Jun 1 - Jul 27 downleg, is needed to reignite bullish momentum. Bears keep an eye on Aug 24 low of 18.3805.

  • SAGB yields have pulled back from intraday highs but still sit above neutral levels, with 10-year breakeven inflation rate last seen at 6.82%. The commodity complex is a tad softer on balance, as is the precious metals basket.
  • President Cyril Ramaphosa will hold an urgent meeting with labour federation today, with the government working on spending cuts ahead of the upcoming mini-budget.

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