Rand Remains Under Pressure Amid Ongoing Energy Crisis

Spot USD/ZAR clings to a narrow range today, last operating at ZAR17.0781, up ~570 pips on the day. Bulls look for a renewed attack on the 50-DMA (ZAR17.1943) after piercing that moving average yesterday. Conversely, bears look for a retreat under Jan 12 low of ZAR16.6950.

• The Rand remains the worst performer in the EMEA region, losing over 1.4% versus the greenback this week. The South African currency has come under pressure from South Africa's escalating energy prices, with local officials struggling for near-term solutions.
• The aggregate BBG Commodity Index sits marginally above neutral levels while the precious metals index has shed ~0.5%, with gold trading on a softer footing.
• Local-currency bond yields have trimmed the bulk of their earlier gains but remain higher on the day. 10-year inflation breakeven rate last seen at 6.21% after printing one-week highs at 6.27%.
• South Africa's mining production data for November will be published shortly. Consensus looks for a 6.5% Y/Y contraction after a 10.4% decline recorded in October. Looking further afield, the next key data signal on the radar is December CPI, due Wednesday.