ZAR on the march -A decent.........>

EMERGING MARKETS: ZAR on the march

-A decent morning for the ZAR has USD/ZAR returning to the week's lowest levels,

although there are few signs of a decent downside breakout with the pair yet to

trouble the Friday low at 15.1554. CPI figures crossed this morning but had

little effect, with y/y slipping to 4.0% from 4.5% and below expectations.

Volumes remain light, keeping a lid on intraday volatility so far.

-A stable CNH also helped soothe sentiment - the CNY fix came in slightly

stronger than expectations, keeping USD/CNH well within its recent range. The

stable CNH helped buoy neighbouring currencies, with KRW outperforming. South

Korean markets also gained on reports that Japanese material maker JSR has

received a permit to resume shipments to South Korea. USD/KRW traded at the

lowest levels since early August on the news, briefly dipping below 1,200.

-Mexican retail sales and the Argentine trade balance are unlikely to occupy

markets for too long today, with focus remaining on the activities of the

Argentine central bank and Powell's appearance at Jackson Hole later this week.