The Rand has resumed its rally on reports confirming a pivot in President Ramaphosa's camp, with the ruling African National Congress reportedly looking to challenge accusations made against its leader in the Section 89 report on the Phala Phala scandal.

• Spot USD/ZAR last trades at ZAR17.2381, down ~2,670 pips on the day. A move through Nov 30 low of ZAR16.8980 would reignite bearish sentiment, drawing attention to Aug 25 low of ZAR16.7102. Conversely, bulls look for a rebound above Dec 1 high of ZAR17.9596.
• USD/ZAR implied volatilities remain elevated, even as they have moderated from levels reached when the Phala Phala report came out. South Africa's political calendar plays a role here, as the continuation of the Phala Phala saga will coincide with the ANC's elective conference this month.
• South African bonds are firmer this morning, with yields last seen 22.0-24.2bp higher. The yield on 10-year local-currency bond sits at 11.057%, well off new cyclical highs printed last Thursday at 11.691%. South Africa's 10-year breakeven inflation rate has extended its pullback and sits at 6.33%.
• The aggregate BBG Commodity Index is slightly weaker today. The precious metals subindex has now fully erased its opening gains.
• South Africa's economy returned to expansion last month, according to the latest reading of S&P Global PMI. The index rose to 50.6 from 49.5 in October, beating the 50.0 median estimate.