Rand Appreciates But Yesterday's Extremes Remain Intact

Spot USD/ZAR trades at ZAR17.5200, around ~455 pips lower on the day, albeit sellers are struggling to force their way through yesterday's low. A downswing past Feb 2 low of ZAR16.9317 would allow bears to set their sights on Jan 12 low of ZAR16.6950. On the flip side, bulls look for a rally towards Dec 13 high of ZAR17.7601 and Dec 1 high of ZAR17.9596.

• The aggregate BBG Commodity Index has strengthened for the second consecutive day, adding ~0.8% on the day thus far. The precious metals subindex is ~0.5% better off, finding poise after a sharp sell-off seen at the back end of last week.
• Local-currency bonds have firmed across the curve, with yields now stabilising 5.9-6.9bp below neutral levels. South Africa's 10-year inflation breakeven rate has eased off from monthly highs and sits at 5.96%.
• The FTSE/JSE Africa All Share Index has edged higher, but firmer gains are needed to end the current consolidation phase, which has seen the index operate just shy of record highs printed last month.
• There is little of note on the local economic docket today, with the market awaiting President Ramaphosa's SONA slated for tomorrow. Any early leaks from the speech would provide much interest.