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Rand Loses Ground In Sync With Precious Metals

ZAR

USD/ZAR has ticked away from intraday highs (19.0041) and last deals at 18.9778, around 1,600 pips higher on the session. Familiar technical contours remain in play, with bulls targeting 19.3301, the 76.4% retracement of the Jun 1 - Jul 27 downleg.

  • The PBOC announced after local hours that it will cut the reserve requirement ratio by 25bp. The measure will free up nearly $70bn of reserves, representing another attempt to stimulate the flagging economy. The latest round of monthly economic indicators, due for release tonight, will provide an insight into the economic condition of the top buyer of South African commodities.
  • Precious metals continue to lose shine, with the relevant BBG gauge shedding ~0.9% today to last sit at its worst levels since March 13. Gold trades ~$5.8/oz. lower when this is being typed.

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