Rand Stabilises After Initial Rally, Precious Metals Continue To Shine

Spot USD/ZAR has stabilised after a slump caused by broad-based greenback sales and strength in precious metals, while the Rand has lost its leading position in the EMEA space. The rate printed intraday lows at ZAR18.0969 before trimming losses and last deals at ZAR18.2105, down 1,080 pips on the day, with familiar technical picture still in play.

• The BBG precious metals subindex has soared today and last sits as much as ~3.4% higher on the session, breaking above its 50-DMA for the first time since mid-February. Gold has rallied to its best levels in more than five weeks. The FTSE/JSE Africa All Share Index sits ~1.3% below neutral levels but the shares of local miners have firmed.
• Absa said in a research note that South Africa's core CPI inflation likely quickened to +5.2% Y/Y last month from +4.9% prior, while headline inflation probably increased to +7.0% from +6.9%. The local statistics office will release inflation data for February on March 22.