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Rand Struggles To Shake Off Yesterday's Weakness

ZAR

Spot USD/ZAR soared through the 19.00 figure yesterday and clings onto those gains this morning, last changing hands at 19.2240 (a touch higher on the day). The rate tested resistance from the 76.4% retracement of the Jun 1 - Jul 27 downleg at 19.3301 but failed to stage a sustained move through that level and pulled back. On the downside, the initial technical target is provided by Aug 24 low of 18.3805.

  • The composite BBG Commodity Index sits 0.2% below neutral levels despite trimming some of its earlier losses. The precious metals subindex operates 0.1% lower on the day, having clawed back most of its initial losses.
  • SAGB yields have increased across the curve, with South Africa's 10-year breakeven inflation rate rising to 7.25%.
  • Local headline flow has been limited, leaving the rand exposed to global drivers.

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