ZAR: Rand Edges Lower, Holds Tight Range

On the lookout for fresh catalysts at the start of the week, USD/ZAR trades at 18.2991, around 330 pips higher on the session. A break above Jul 2 high of 18.6627 would support the bullish case, turning the focus to the round figure/Jun 6 high of 19.0000/54. On the flip side, bears see Jun 21 low of 17.8689 as their initial target and a break here would open up Jul 27, 2023 low of 17.4193.

• The PBOC shaved 10bp off its 7-Day Reverse Repo Rate overnight, with equivalent cuts to 1-Year and 5-Year Loan Prime Rates announced shortly thereafter. The surprise move came on the heels of last week's Communist Party's economy-focused Third Plenum.
• The aggregate BBG Commodity Index last sits 0.3% above neutral levels, pausing sharp losses from last week. The precious metals subindex is little changed on the day, with gold operating close to neutral levels (just ~$1.7/oz. better off).
• SAGB yields sit a touch lower across the curve, with 5-year and 10-year breakeven inflation rates last seen little changed at 4.71% and 5.88% respectively.