Rand Creeps Higher, SAGB Auction Eyed

Spot USD/ZAR trades on a heavier footing despite an uptick in the BBDXY Index (+0.1%). The pair last deals at 18.6133, down 660 pips on the session, with bears eyeing support from Feb 2 low of 18.5578, followed by Dec 29 low of 18.2550. On the flip side, bulls look for a rebound towards Feb 23 high of 19.3899.

• The African National Congress (ANC) is under pressure for including some officials accused of being implicated in state capture on its election lists. The party is fighting an uphill battle to keep its parliamentary majority, which opinion polls suggest will not be an easy task. This keeps political uncertainty elevated, with USD/ZAR 3-month implied volatility struggling to unwind its spike from Feb 28.
• SAGB yields sit higher across the curve, with ZAR3.9bn of bonds maturing in 2035, 2048 and 2053 on offer today. Standard Bank noted that the auction represents "some event risk" after "the complete lack of interest in fixed income yesterday." The results will be published at 09:30GMT/11:30SAST.
• The composite BBG Commodity Index is barely changed on the day, while the precious metals subindex sits 0.3% below neutral levels, catching a breather after a recent sharp rally.
• The local data docket is virtually empty today.