Rand Garners Strength Amid Firmer Precious Metals

Spot USD/ZAR has extended yesterday's losses amid broad-based greenback weakness and precious metals strength. The rate last deals at ZAR18.0961, down ~1,840 pips on the session, approaching key support from Mar 14 low of ZAR18.0420. A close below that level would mark the formation of a head-and-shoulders pattern, flagging potential for further losses. Bulls look for a rebound above Mar 8 high of ZAR18.7192, which would reignite bullish momentum.

• The commodity complex is marginally firmer on average, with the precious metals subindex rallying ~1.3% to claw back its weekly loss. The resilience of that space might be supporting the Rand this morning.
• Local-currency bond yields eased off initially but have now ticked away from worst levels and last sit 6.4-7.4bp lower across the curve. South Africa 10-year breakeven inflation rate showed at a five-week low.
• Consumer confidence in South Africa deteriorated in Q1, data from the Bureau for Economic Research showed. Headline index fell to -23 from -8 recorded in 4Q2022.