Rand Back On Defensive, Cabinet Lekgotla Draws To End

Spot USD/ZAR last changes hands at ZAR17.1468, up 765 pips on the day. A break above Jan 6 high of ZAR17.4343 and Jan 31 high of ZAR17.4908 would support the bullish case, while bears look for losses past Jan 12 low of ZAR16.6950.

• Local-currency bonds have softened this morning, with yields sitting higher across the curve. South Africa's 10-year breakeven inflation rate sits at 5.74%, moving away from the new multi-month low printed at 5.69%.
• The composite BBG Commodity Index operates ~0.3% lower on the day, with the precious metals subindex also ~0.3% worse off. Precious metals staged a foray to new cyclical highs yesterday, but erased gains thereafter.
• South Africa's S&P Global M'fing PMI fell into contractionary territory, printing at 48.7 versus 50.0 expected.
• The Cabinet will wrap up its strategy meeting later today, where the ongoing energy crisis is high on the agenda.