Rand Weakens On Weak Chinese Activity Data, Softer Precious Metals

Spot USD/ZAR posted a leg higher as the EMEA session got underway, which leaves the rand behind all its regional peers. The pair last deals at 19.2460, up ~1,630 pips on the session. It is approaching the 764% retracement of the Jun 1 - Jul 27 sell-off at 19.3301. A break here would open up the all-time high of 19.9204. On the flip side, the 20-EMA provides the initial layer of support at 18.5827.

• A disappointing set of economic activity indicators released out of China overnight has applied pressure to the rand as concerns over the economic recovery in South Africa's chief trading partner continue to linger.
• The aggregate BBG Commodity Index has shed ~0.3% so far, extending recent losses. The precious metals subindex operates ~0.5% below neutral levels.
• IMF's Max Alier told Bloomberg that the SARB has been "very successful" in managing CPI, while the economy is being held back by supply-side challenges.
• South Africa's unemployment rate may have edged lower to 32.8% in Q2 from 32.9% prior. The data will be published at 10:30BST/11:30SAST.