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USD/ZAR: Rand gives back gains ahead of local mining data

The South African Rand erased earlier daily gains against the US Dollar on Thursday ahead of South African mining production data release.

Meanwhile, the US Dollar was mostly flat against major peers, after the latest CPI inflation report cemented expectations of a rate pause by the Federal Reserve at its September 19th-20th meeting.

Rand traders are now expecting the July data on South African mining output due to be released at 9:30 GMT today.

Mining production in South Africa rose 1.1% year-on-year in June, while rebounding from a revised down 0.7% drop in May, as gold production surged 28.5% YoY. The latter has been the sharpest year-on-year increase in the ongoing 6-month period of growth.

Gold output was adversely affected a year earlier, contracting 27.5% in June 2022, because of the ongoing energy crisis in South Africa.

On the other hand, diamonds production contracted 41% YoY and copper production shrank 32% YoY in June.

Market consensus points to a 0.5% YoY growth in mining output in July.

As of 9:14 GMT on Thursday USD/ZAR was edging up 0.23% on the day to trade at 18.8524. Earlier in the session, the exotic Forex pair went down as low as 18.7562. The latter has been the pair’s weakest level since September 4th (18.7376).

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