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Rand Advances After Tuesday's Rally In Precious Metals

ZAR

Spot USD/ZAR has faltered after rejecting trendline support-turned-resistance yesterday, with solid gains for precious metals Tuesday possibly lending some support to the Rand. The rate last deals at ZAR17.8721, down ~580 pips on the session, with bears looking for losses past Mar 31 low of ZAR17.6993. Bulls keep an eye on the aforementioned trendline, which kicks in at ZAR17.9769.

  • The composite BBG Commodity Index sits marginally below neutral levels, but the precious metals subindex refreshed cyclical highs in the wake of yesterday's impressive 2.5% rally, with gold extending gains this morning. The FTSE/JSE Precious Metals and Mining Index has advanced alongside precious metals.
  • South Africa's economy unexpectedly fell into contraction last month, with S&P Global PMI easing to 49.7 from 50.5 prior, falling short of the 51.0 consensus forecast. The authors of the survey said that customer sales remained weak due to inflationary pressures.

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