Rand Sits Close To Neutral Levels, Precious Metals Extend Losses

Spot USD/ZAR has slipped as the BBDXY index dipped this morning, albeit the precious metals are slightly softer. The rate last deals at 18.9188, just shy of neutral levels. The key near-term bearish target is provided by Aug 24 low of 18.3805. Conversely, bulls look for gains past 19.3301, the 76.4% retracement of the Jun 1 - Jul 27 sell-off.

• South African officials struck optimistic notes about the energy outlook as unit 3 of the Kusile power station came back online well ahead of schedule, while further two units should be returned to service in the coming week. Electricity Minister Ramokgopa suggested that this should provide a significant boost to generation capacity, helping alleviate loadshedding in the summer season.
• The composite BBG Commodity Index sits marginally above neutral levels after last Friday's dip. However, the precious metals subindex has extended losses, shedding 0.80% just this morning and printing new cyclical lows.
• South Africa's Absa Manufacturing PMI will hit the wires at 10:00BST/11:00SAST. Separately, Naamsa vehicle sales may be published at some point today.