Short-term moves are still being dictated by the rate-cut hopes, which keep dollar strength in check.
Traders are keeping an eye on this week's US PCE price index data for confirmation of moderation in US inflation. EM and risk-sensitive currencies like the rand continue to trade on the back foot against the major currencies as weak Chinese economic data and the US-China trade war concerns weigh on risk sentiment.
The rand is trading flat at 18.25 in a very tight range this morning. Traders are awaiting this week's local inflation numbers for hints about when the Sarb might consider cutting interest rates. Bank of America forecasts an interest cut in September, but the Sarb is unlikely to do anything before the Fed acts.
Metal prices continue to slide due to political uncertainty and Chinese demand concerns. Gold slipped to close below $2,400, while Platinum and Palladium ended weaker on the day. Base metals closed weaker, weighed down by low demand and high stockpiles, with Copper recording its seventh consecutive day of losses.
Brent crude also closed lower on the day at $82.40 as US inventories continued to build up.
