Rand Gets Some Reprieve, Local Data Eyed

Spot USD/ZAR corrects its two-day upswing this morning, shedding ~893 pips so far to last trade at 18.9960. The rate is back below the 19.00 mark, with bears taking aim at Nov 29 low of 18.4597, followed by Nov 15 low of 18.1117. On the flip side, bulls see Oct 26 high of 19.2710 as their initial target.

• The Cabinet's approval for PetroSA's recommendation of an investment partnership with the regional bank of GazpromBank raised some concerns yesterday, with some flagging the risk of exposure to secondary sanctions by the US. The Cabinet and PetroSA tried to soothe the nerves, arguing that there is no basis for imposing any such sanctions over the investsment deal.
• The composite BBG Commodity Index has stabilised, adding 0.4% so far. The precious metals subindex is up 0.3%, following a sharp retreat over the past couple of days.
• SAGB yields are lower across the curve, with South Africa's 10-year breakeven inflation rate sitting at 6.51%.
• South African October mining data will cross the wires shortly, with industrial output due later in the day.