Rand Reverses Initial Losses, Moves To Top Of EMEA Pile

Spot USD/ZAR continues to trade on a heavier footing in the wake of a sharp sell-off on Friday, driven by below-forecast US NFP data. The pair reversed its initial uptick into the European morning and last deals at 18.7794, down ~880 pips on the session. The low print of Jul 4 at 18.6121 provides the initial bearish target. Meanwhile, bulls look for gains towards 19.2346, 61.8% of the Jun 1 - 16 bear leg.

• Chinese inflation data were the main point of note overnight, adding to a series of weaker-than-expected data outturns from Asia's largest economy. Annual CPI growth was flat (versus +0.2% Y/Y expected), while PPI fell 5.4% Y/Y (versus -5.0% expected). The data pushed USD/CNH slightly higher, but recent cyclical highs remained intact.
• South African headline flow brought some fresh optimistic official rhetoric on the load-shedding crisis, with Electricity Minister Ramokgopa noting that rolling blackouts could end "much quicker than we had anticipated." The official said that the ongoing recovery in energy availability factor is sustainable.
• SAGBs are slightly firmer this morning, with 10-year breakeven inflation rate last seen at 6.82%, easing from a one-month high printed on Friday. The aggregate BBG Commodity Index is little changed, with the precious metals subindex sitting marginally lower on the day.