MNI: GERMANY OCT EXPORTS -2.8% M/M (VS FCST -2.6%)

MNI BRIEF: BOJ Tankan: Business Inflation Expectations Solid

MNI BRIEF: RBA Details Hypothetical Monetary Policy Paths

MNI: PBOC Net Injects CNY14.2 Bln via OMO Friday

MNI: PBOC Sets Yuan Parity Higher At 7.1876 Fri; -1.22% Y/Y

MNI BOJ DEC TANKAN LARGE MFG INDEX +14; SEPT 13; MEDIAN +12

MNI: SPAIN NOV HICP +0% M/M, +2.4% Y/Y

MNI: FRANCE NOV HICP -0.1% M/M, +1.7% Y/Y

MNI: SWEDEN NOV UNEMPLOYMENT 7.4%

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

ZAR: Rand Garners Strength On China Stimulus News, USD Weakness

ZAR
EM BulletBulletGlobalEmerging Market NewsRegion

The combination of broader greenback weakness (BBDXY -0.1%) ahead of today's speech from Fed Chair Powell and the risk-on reaction to the prospect of fresh stimulus in China has applied pressure to USD/ZAR, pushing the rate to new cyclical lows. It last changes hands at 17.1524, almost 1,200 pips lower on the session.

  • From a technical perspective, bears look for a clean, sustained break below 17.1388, the 1.00 projection of the 1 Jun - Jul 27 - Oct 6 2023 price swing. Meanwhile, the RSI has slid into oversold territory (last at 25.7) and bulls look for a rebound towards the 50-EMA, which kicks in at 17.8440.
  • Bloomberg reported that "China is considering injecting up to CNY1tn of capital into its biggest state banks to increase their capacity to support the struggling economy." Separately, Xinhua reported that the Politburo pledged to ramp up fiscal stimulus in order to meet the economic goals for this year.
  • The aggregate BBG Commodity Index sits marginally shy of neutral levels; the precious metals subindex up by 0.3%. Gold trades ~$7/oz. higher on the day.
  • SAGB yields are lower across the curve. South Africa's 10-year breakeven inflation rate sits at 5.18%, refreshing cyclical lows.
  • The focus turns to August PPI and Q2 non-farm payrolls, due for release at 10:30BST/11:30SAST.
209 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

The combination of broader greenback weakness (BBDXY -0.1%) ahead of today's speech from Fed Chair Powell and the risk-on reaction to the prospect of fresh stimulus in China has applied pressure to USD/ZAR, pushing the rate to new cyclical lows. It last changes hands at 17.1524, almost 1,200 pips lower on the session.

  • From a technical perspective, bears look for a clean, sustained break below 17.1388, the 1.00 projection of the 1 Jun - Jul 27 - Oct 6 2023 price swing. Meanwhile, the RSI has slid into oversold territory (last at 25.7) and bulls look for a rebound towards the 50-EMA, which kicks in at 17.8440.
  • Bloomberg reported that "China is considering injecting up to CNY1tn of capital into its biggest state banks to increase their capacity to support the struggling economy." Separately, Xinhua reported that the Politburo pledged to ramp up fiscal stimulus in order to meet the economic goals for this year.
  • The aggregate BBG Commodity Index sits marginally shy of neutral levels; the precious metals subindex up by 0.3%. Gold trades ~$7/oz. higher on the day.
  • SAGB yields are lower across the curve. South Africa's 10-year breakeven inflation rate sits at 5.18%, refreshing cyclical lows.
  • The focus turns to August PPI and Q2 non-farm payrolls, due for release at 10:30BST/11:30SAST.