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Rand Goes Offered, Absa M'fing PMI Worsens


Spot USD/ZAR last trades at ZAR17.9102, up 1,140 pips on the day, with higher energy prices weighing on EM currencies. The rate's upswing was capped by support-turned-resistance which kicks in at ZAR17.9687. On the flip side, bears look for losses towards Mar 31 low of ZAR17.6993.

  • The aggregate BBG Commodity Index has added ~1% after a surprise OPEC+ output cut announced over the weekend. Energy resources lead gains in the commodity space, with precious metals sit ~0.3% lower on the day. South Africa's 10-year breakeven inflation rate has edged higher to 6.21%.
  • Local-currency bonds have sold off in early trade, with yields last seen 4.6-5.0bp higher across the curve.
  • Contraction in South Africa's manufacturing sector unexpectedly worsened last month, as Absa PMI deteriorated to 48.1 from 48.8 recorded in February versus 49.5 expected.

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