USD/ZAR Retesting Intraday Lows, South African Equity Benchmark Gains

USD/ZAR retesting session lows even as the BBDXY index has been tracking higher in European hours, while the commodity complex is losing its earlier shine. That said, the broader EMEA space is generally firmer versus the greenback, with the Rand sitting around the middle of the regional scoreboard. USD/ZAR last deals at ZAR17.1956, down ~400 pips on the day.

• The aggregate BBG Commodity Index still operates 0.25% higher on the day, but has now trimmed the bulk of its initial gains. The precious metals subindex is marginally higher, while the industrial metals subindex extends losses.
• The FTSE/JSE Africa Top40 Index is posting healthy gains, confirming a bull flag formation, which sets the stage for further gains going forward. The index is nearly 1% better off at typing.
• Domestic inflation/monetary policy dynamics remain the focal point, with above-forecast CPI readings released today cementing the case for a 75bp SARB rate hike on Thursday.