Rand Gives Away Initial Gains Ahead Of Local Data Releases

Spot USD/ZAR trades at 18.5766 and has now retraced much of its earlier losses, with bulls looking for a firmer recovery towards Apr 19/Feb 23 highs of 19.3862/99. Bears continue to target Apr 9 low of 18.4131.

• Wednesday's price action was dominated by the Fed's monetary policy meeting, with South African markets shuttered for a public holiday. Rhetoric downplaying potential for a rate hike offered some relief to the markets, even as Chair Powell signalled that it may take some more time before the Fed can pivot to monetary easing with sufficient confidence.
• SAGB yields are lower across the curve, taking their cue from core markets. South Africa's 10-year breakeven inflation rate sits at 6.88% after printing fresh three-week lows at 6.86%.
• The commodity complex has added 0.5% after a sharp decline yesterday. BBG precious metals subindex is little changed, albeit gold trades $13.6/oz. worse off at typing.
• Domestic data today include Absa Manufacturing PMI, Naamsa vehicle sales and electricity production/consumption.