Rand Trims Initial Gains But Remains Above Neutral Levels

USD/ZAR remains slightly heavy and last trades at ZAR18.2782, down ~120 pips on the session. Losses past the ZAR18.00 figure would open up Mar 31 low of ZAR17.6993. Conversely, bulls see Mar 21 high of ZAR18.6132 and Mar 8 high of ZAR18.7192 as their initial targets.

• The aggregate BBG Commodity Index has firmed after printing fresh cyclical lows yesterday, the index last sits ~0.3% higher on the day. The precious metals subindex has given away the bulk of its earlier gains and operates ~0.3% above neutral levels.
• Local-currency bonds have reversed their initial gains and last trade 1.4-2.0bp cheaper across the curve. South Africa's 10-year breakeven inflation rate sits at 6.53%.
• South Africa's S&P Global PMI slipped to 49.6 in April from 49.7 prior, with the local economy still feeling the impact of "load shedding, input shortages and longer lead times." Supply-side challenges "meant that companies showed little reaction to a more positive demand picture in April."
• Electricity output and consumption data for March will be published later today.