Rand Outperforms Ahead Of Tomorrow's July CPI Report

The rand is comfortably the best performer in the EMEA FX space, with all eyes on the ongoing BRICS summit and meetings on the fringes of the conference. Chinese President Xi Jinping told reporters that his country will import more "quality products" from South Africa, while the two nations will boost bilateral cooperation across a range of domains, including electricity, new energy and innovation.

• USD/ZAR operates at 18.7500, around 2,150 pips lower on the day, with bears still eyeing support from the 50-EMA at 18.5963. CNH/ZAR has shed 378 pips to last change hands at 2.5641, through the 50-EMA (2.5822), with bears looking for a dip towards Jul 27 low of 2.4392.
• The next data release of note is July CPI report, due tomorrow at 09:00BST/10:00CEST. Headline inflation may have slowed to +4.9% Y/Y from +5.4% prior, while core inflation may have ticked lower to +4.9% Y/Y from +5.0%, according to a Bloomberg survey of analysts. Nedbankwrote that the expected slowdown in annual inflation was supported by base effects, but monthly CPI growth may have accelerated due to some seasonal price adjustments.