ZAR: Rand Catches Breather After Impressive Rally

Spot USD/ZAR snaps a ten-day losing streak and edges higher to last deal at 17.7731, around 700 pips better off. The pair found support at 17.6746, the lowest point in 13 months. The pair's recent downswing and the clearance of several key levels paves the way for a move towards Jul 27, 2023 low of 17.4193. Should bulls regain control, they will be seeking to attack the 50-EMA, currently intersecting at 18.2528.

• SAGBs are a tad firmer across the curve, while South Africa's 10-year breakeven inflation rate sits at 5.64%. The aggregate BBG Commodity Index is unchanged on the day, but the precious metals subindex has added 0.8%, printing its best levels in a month. Gold last changes hands ~$16.2/oz. above neutral levels, refreshing all-time highs.
• The key item on the local economic calendar this week is the July CPI report, due for release tomorrow morning. The data will be scrutinised ahead of next month's SARB rate decision. 1x4 FRA contracts dropped today, as they now capture the next monetary policy decision, and trade at a 27bp discount to the 3-Month JIBAR.
• South Africa's leading indicator worsened to 111.4 in June from 111.9 in May, according to data from the SARB.