MNI: GERMAN OCTOBER GFK CONSUMER CLIMATE -21.2

MNI BRIEF: RBA Says Financial System Robust

MNI: PBOC Net Drains CNY231.6 Bln via OMO Thursday

MNI: PBOC Sets Yuan Parity Higher At 7.0354 Thurs; +3.96% Y/Y

CHINA PBOC CONDUCTS CNY292 BLN VIA 14-DAY REVERSE REPOS THURS

CHINA SETS YUAN CENTRAL PARITY AT 7.0354 THURS VS 7.0202

EZ/UK Bond Supply Calendar: 5/5/10-Year BTPs / CCTeu Due Friday

US EIA: CRUDE OIL STOCKS EX SPR -4.47M TO 413.0M SEP 20 WK

MNI: US AUG NEW HOME SALES -4.7% TO 0.716M SAAR

CANADA: Politics Week: Parliament Opens With Early Election Threats

AUSTRALIA: Albanese Lines Up Budget for May Election

AUSTRALIA: Albanese Lines Up Budget for May Election

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

ZAR: Rand Stays Firmer Despite CPI Miss

ZAR
EM BulletBulletGlobalEmerging Market NewsRegion

The rand has shown a very limited reaction to the release of domestic inflation data, which came in slightly softer than expected, reinforcing expectations of a rate cut from the SARB tomorrow. When this is being typed, USD/ZAR trades at 17.5571, around 620 pips lower on the day, with bears looking for further losses towards Jul 27, 2023 low of 17.4193. The 50-EMA provides the initial layer of resistance at 17.9869.

  • Headline inflation cooled to +4.4% Y/Y in August, hitting the lowest level since Apr 2021. Consensus was looking for a return to the SARB's target mid-point of +4.5%. Core inflation was also lower than forecast, coming in at +4.1% Y/Y versus +4.2% expected. The data support the case for a rate cut tomorrow, albeit the Fed's decision tonight will also be closely watched.
  • SAGB yields are slightly lower, curve runs flatter. South Africa's 5-year and 10-year breakeven inflation rates sit at 4.33% and 5.29% respectively. The 3-month JIBAR/1x4 FRA spread is 29.8bp ahead of tomorrow's SARB decision. Click here to see our preview of the meeting.
  • The aggregate BBG Commodity Index is up 0.2% on the session; the precious metals subindex is marginally firmer.
  • Retail sales data for July will be published at 12:00BST/13:00SAST.
201 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 rand has shown a very limited reaction to the release of domestic inflation data, which came in slightly softer than expected, reinforcing expectations of a rate cut from the SARB tomorrow. When this is being typed, USD/ZAR trades at 17.5571, around 620 pips lower on the day, with bears looking for further losses towards Jul 27, 2023 low of 17.4193. The 50-EMA provides the initial layer of resistance at 17.9869.

  • Headline inflation cooled to +4.4% Y/Y in August, hitting the lowest level since Apr 2021. Consensus was looking for a return to the SARB's target mid-point of +4.5%. Core inflation was also lower than forecast, coming in at +4.1% Y/Y versus +4.2% expected. The data support the case for a rate cut tomorrow, albeit the Fed's decision tonight will also be closely watched.
  • SAGB yields are slightly lower, curve runs flatter. South Africa's 5-year and 10-year breakeven inflation rates sit at 4.33% and 5.29% respectively. The 3-month JIBAR/1x4 FRA spread is 29.8bp ahead of tomorrow's SARB decision. Click here to see our preview of the meeting.
  • The aggregate BBG Commodity Index is up 0.2% on the session; the precious metals subindex is marginally firmer.
  • Retail sales data for July will be published at 12:00BST/13:00SAST.