Rand Holds Steady, Local Data On Radar

The rand was hit by a double whammy of domestic political risk and hawkish Fed repricing on Wednesday. A new opinion poll indicating a significant drop in support for the ruling African National Congress (ANC) coupled with a decent result for ex-President Zuma's MK Party, while US CPI beat expectations in March leading to the moderation in Fed easing bets.

• Spot USD/ZAR last changes hands at 18.7864, a touch higher on the day, with bulls looking to attack Mar 28 high of 19.1063. Conversely, bears seek a renewed sell-off towards Apr 9 low of 18.4131 and Dec 29 low of 18.2550.
• The precious metals subindex holds just slightly above neutral levels, with gold trading ~$3/oz. higher on the session. The yellow metal's outperformance appears to have been an important driver of ZAR gains over the past few weeks.
• SAGB yields are higher across the curve, albeit they have ticked away their initial highs. South Africa's 10-year breakeven inflation rate has returned above 7% and last sits at 7.02%.
• South Africa's SACCI Business Confidence Index and mining data will both cross the wires at 10:30BST/11:30SAST, with manufacturing production due at 12:00BST/13:00SAST. Industrial production may have grown 3.7% Y/Y in February, according to a Bloomberg survey.