Rand Remains On Defensive, Awaits September PPI Print

Spot USD/ZAR crept higher in the overnight session, before trimming some gains into the London morning, hitting new two-week highs in the process. It last changes hands at 19.1704, around 450 pips above neutral levels. The high print of Oct 6 provides the initial bullish target at 19.6399, while bears look for a pullback towards Sep 20 low of 18.6825.

• South Africa's factory-gate inflation may have accelerated to +5.0% Y/Y in September from +4.3% prior, according to a Bloomberg poll of analysts. Sequential data may also show stronger price pressures, with PPI growth expected at +1.3% M/M last month versus +1.0% in August.
• Little to write home about when it comes to domestic news flow, with the rand exposed to offshore developments and swings in broader risk sentiment.