Lingering Greenback Weakness, Firmer Metals Lend Support To ZAR

The greenback traded on a softer footing amid light headline flow in the Asia-Pac session, allowing USD/ZAR to ease off. The rate last trades at ZAR17.3080, slightly lower on the day but within yesterday's range.

• Bears look for a break under Nov 15 low of ZAR17.1107after a period of sideways trade over the past few days. Bulls eye Nov 17 high of ZAR17.5553 for initial resistance, with the 50-DMA coming up next at ZAR17.8717.
• BBG Commodity Index is down 0.19%, but the precious metals subindex sits nearly 0.5% higher and industrial metals subindex is up more than 1%, offering some support to the ZAR.
• The local data docket today lacked any first-tier releases. The SARB's leading indicator climbed to 125.0 in September from 123.4 prior.
• The focus turns to October CPI data coming up tomorrow. Annual headline inflation may have eased to +7.4% Y/Y last month, while core inflation may have picked up to +4.9%, according to a Bloomberg survey.
• Ahead of the release of latest CPI figures, South Africa's 10-year inflation breakeven rate sits at the three-month low of 6.19%.
• The SARB will then announce its monetary policy decision on Thursday, with most expecting a 75bp rate hike as the central bank is seeking to get on top of inflation.