ZAR only driven by global factors

Following the turbulences seen over the past few days the ZAR enjoyed a breather yesterday. However, that also illustrates what is happening on the FX market at present. If the rand had got under massive pressure over the past few days because investors were shaken up by events in China and took flight to safe haven currencies everything remained clam yesterday; despite the fact that the national statistical office published catastrophic data on Q2 GDP. 

Contrary to expectations real GDP had eased by a seasonally adjusted 0.3% qoq. Analysts had expected an average rise of 0.1%. Following the slow start in Q1 that leaves hardly more than an overhang from 2014 following the positive expectations for GDP growth in 2015. However, the rand was completely unimpressed by that. It was even able to gain some ground intraday and is today trading at 13.10 against USD, notes Commerzbank. That is hardly cause to sound the all clear though as it is uncertain that the situation in China will improve short term.