Rand Falters After Weak Chinese Data Overnight, S. Africa's Unemployment Rate Ticks Higher

USD/ZAR climbed to a session high of ZAR19.1657 and trimmed gains in line with gyrations in broader greenback strength. The rate last deals at ZAR19.0757, up ~460 pips on the day, with bulls looking for gains towards May 12 all-time high of ZAR19.5148 and the psychological ZAR20.00 figure. Bears keep an eye on May 2 high of ZAR18.5075.

• Chinese activity data released overnight came in weaker than expected, providing further evidence of economic recovery losing steam. The data provided disappointment despite the low base from last year, when Shanghai was locked down. A streak of underwhelming economic data out of South Africa's top trading partner creates another headwind for the rand, alongside a suite of familiar domestic factors.
• Geopolitical tensions between South Africa and the U.S. are drawing attention again as SANDF top commander leads a delegation of generals to Moscow.
• The composite BBG Commodity Index sits ~0.5% lower on the day, with the precious metals subindex also ~0.5% worse off.
• South Africa's official unemployment rate rose to 32.9% from 32.7% prior, printing marginally below the 33.0% median estimate.