Rand Trades On Firmer Footing Despite Weaker Commodities

USD/ZAR has lost altitude, which has been facilitated by a downswing in the BBDXY index. The rate now changes hands at ZAR18.3674, down 1,060 pips on the session. From a technical viewpoint, a breach of the ZAR18.00 figure would bring Mar 31 low of ZAR17.6993 into view. Bulls look for a rebound towards Mar 21 high of ZAR18.6132 and Mar 8 high of ZAR18.7192.

• The commodity complex is weaker, with the BBG Commodity Index sitting ~0.5% lower on the day and printing its worst levels since mid-to-late March. The precious metals subindex operates only marginally above neutral levels.
• Local-currency bonds have turned bid and last trade 2.9-4.0bp richer, with 10-year breakeven inflation rate easing to 6.56%.
• The local economic docket is empty today, which turns focus to the FOMC monetary policy decision in the U.S.