ZAR: Rand Continues To Correct Earlier Rally

USD/ZAR continues to correct its recent losing streak, now posting gains for the third day in a row. The release of below-forecast CPI data yesterday may have facilitated this uptick, with the BBDXY Index moving sideways over the past couple of days. The pair last deals at 17.9092, around 630 pips higher on the session, with the 50-EMA providing the initial bullish target at 18.2258. Bears look for renewed losses past recent cycle lows printed on Aug 19 at 17.6746.

• SAGB yields are a tad lower across the curve, with South Africa's 10-year breakeven inflation rate last seen at 5.55%, hovering just above recent cyclical lows. The 1x4 FRA/3-Month JIBAR spread is -29bp, with expectations of a 25bp rate cut at the SARB's next monetary policy meeting growing firmer in reaction to yesterday's inflation data.
• The aggregate BBG Commodity Index is marginally weaker on the day; the precious metals subindex has shed 0.2% and gold trades ~$7.1/oz. below neutral levels.