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Rand Under Pressure After Weak Chinese Imports Print

ZAR

The rand remains exposed to offshore developments, including Chinese trade data overnight and Thursday's US CPI. Spot USD/ZAR trades at 18.7874, up ~860 pips on the session, consolidating above its 50- & 100-DMAs breached in the recent days. On the topside, bulls see Jul 7 high of 19.1533 as their initial target. Bears look for losses towards Jul 27 low of 17.4193.

  • The rand may have come under pressure from weaker-than-expected Chinese imports data released overnight. China's trade surplus unexpectedly widened in July, with imports contracting by 12.4% Y/Y versus -5.6% expected.
  • The composite BBG Commodity Index has shed ~0.8% today. The precious metals subindex sits ~0.1% below neutral levels after breaking below the 200-DMA.

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