March 17, 2023 10:00 GMT
Rand Turns Bid Amid Firm Showing From Commodity Space
USD/ZAR has eased off on the final day of the week, weighed on by broad-based greenback weakness coupled with commodity bid. The rate last deals at ZAR18.3197, down ~790 pips on the session. Bears look for losses past Mar 14 low of ZAR18.0420, which would mark the completion of a head-and-shoulders reversal pattern. Conversely, a key near-term resistance has been defined at Mar 8 high of ZAR18.7192.
- The aggregate BBG Commodity Index has added ~0.9%, moving further away from its recent cyclical lows, with the precious metals subindex also ~0.9% better off.
- Local-currency bonds have firmed across the curve, with yields down 3.1-4.2bp and 10-year breakeven inflation rate seen at 6.38%.
- The National Energy Regulator of South Africa (NERSA) confirmed that the previously announced 18.65% electricity tariff hike for this year will go ahead, despite President Ramaphosa's call for a reconsideration of the decision. Poorer households will be eligible for a reduced 10% increase.