Rand Resumes Losses As Precious Metals Lose Shine

Spot USD/ZAR snaps a two-day losing streak as financial markets stabilise after the SVB turmoil. The rate last changes hands at ZAR18.2872, up ~895 pips on the day, with bulls looking for a rally towards Mar 8 high of ZAR18.7192 and the ZAR19 figure. Bears keep an eye on Mar 3 low of ZAR18.0825.

• The composite BBG Commodity Index has shed ~0.6% so far, with the precious metals subindex down ~0.7% on the day, as the space corrects the spectacular rally seen at the start to the week.
• Local-currency bonds have come under mild pressure, with yields last sitting 5.4-6.3bp higher across the curve and South Africa's 10-year breakeven inflation rate edging higher to 6.29%.
• The FTSE/JSE Africa All Share remains heavy and trades ~1.2% worse off, sinking through its 100-DMA and approaching the 38.2% retracement of the Sep 28 - Jan 27 rally.
• In a speech published on the central bank's website, SARB Deputy Governor Cassim flagged upside risks to South Africa's inflation outlook and warned that longer-term inflation expectations are well above the mid-point of the target range.
• South Africa's mining production fell 1.9% Y/Y in January after a revised 3.6% contraction in December versus -2.8% expected. The next data release of note is manufacturing output at 11:00GMT/13:00SAST.