Rand Oscillates Around Neutral Levels

Spot USD/ZAR printed its worst levels since January 2 yesterday before recovering from there. That said, a modest uptick overnight was fully reversed into the European morning and the rate last deals at 18.4786, fluctuating around neutral levels. The pair has pulled back towards unchanged levels, even as the BBDXY Index holds the bulk of its earlier gains.

• From a technical perspective, bears look for a move through Dec 29 low of 18.2550. On the upside, a break above the 50-EMA at 18.8246 would expose Feb 23 high of 19.3899.
• Politics remain front and centre ahead of the elections slated for May 29. Jabulani Khumalo, the ousted founder of the MK Party, has taken on ex-President Jacob Zuma, demanding that the IEC removes him as party leader and election candidate.
• SAGB yields have ticked lower across the curve, with 10-year breakeven inflation rate last seen at 6.84%. The precious metals subindex is slightly lower on the day, with gold trading ~$3.0/oz. worse off.
• Reminder that the National Treasury holds its weekly bond auction today.