Rand Oscillates Around Neutral Levels After SARB-Inspired Rally

USD/ZAR came under pressure in reaction to the SARB's larger-than-expected rate hike yesterday. The pair crossed below Mar 23 low/trendline support/50-DMA and completed a multiple head-and-shoulders pattern. When this is being typed, it changes hands at ZAR17.8099, down ~110 pips on the day.

• From a technical point of view, bears look for further losses towards Feb 2 low of ZAR16.9317. Conversely, bulls keep an eye on Mar 8 high of ZAR18.7192.
• The SARB yesterday raised interest rates by an expectation-busting 50bp on the back of inflation concerns.
• FRA 2x5 vs. 3-month JIBAR spread widened after yesterday's SARB rate decision and currently sits at 62bp.
• Local-currency bonds have firmed across the curve, with yields last seen 2.3-3.6bp lower. South Africa's 10-year breakeven inflation rate has eased to 6.22%.
• The composite BBG Composite Index has shed ~0.5%, with the precious metals index sitting ~0.3% lower on the session.
• South Africa's February trade balance will hit the wires this afternoon.