Rand Cuts Losses, Becomes Top EMEA Performer Today

USD/ZAR has pulled back after refusing to re-test the new all-time high printed yesterday at ZAR19.8672. The pair last deals at ZAR19.7381, almost 400 pips higher on the session, with bulls eyeing a break above record highs before attempting a run at the psychologically significant ZAR20.00 figure.

• President Cyril Ramaphosa delivers the Presidency Budget Vote in the National Assembly. He told lawmakers that the government is preparing a new energy security bill, which will facilitate the construction of renewable energy projects, while reaffirming South Africa's carbon emission reduction commitments.
• From a cross-asset perspective, local-currency bonds remain slightly weaker, despite trimming the bulk of earlier losses. Elsewhere, the composite BBG Commodity Index has trimmed losses and is ~0.5% worse off, while the precious metals subindex sits ~0.3% higher on the day.
• South Africa's trade surplus narrowed to ZAR3.5bn in April from the revised ZAR6.3bn, coming in above the ZAR0.5bn median estimate in a Bloomberg survey. A better than expected outturn for trade balance may have lent some support to the rand, countering the negative impact of weak Chinese PMI figures released overnight.