Commodity Complex Finds Poise, Rand Gets Some Reprieve

Spot USD/ZAR has corrected its prior rally this morning, as the dust settles after the release of expectation-busting U.S. NFP report last Friday. The rate last deals at ZAR17.6162, down ~480 pips on the day, with bears looking for losses past Feb 2 low of ZAR16.9317 and towards Jan 12 low of ZAR16.6950. Conversely, bulls keep an eye on Dec 13 high of ZAR17.7601 and Dec 1 high of ZAR17.9596.

• The commodity space has found poise, with the composite BCOM Index last seen ~0.7% better off. The precious metals subindex has added ~0.4% so far, snapping a three-day losing streak.
• Local-currency government bonds have mostly retraced their initial downswings, with yields last seen slightly above neutral levels. South Africa's 10-year breakeven inflation rate gapped higher at the re-open and last sits at 5.97% amid continued recovery from recent cyclical lows.
• Outgoing Eskom CEO Andre De Ruyter told BBG that the electricity utility needs debt relief and tariff hikes to survive, adding that he expects a debt-relief plan to be included in this month's budget speech.
• Domestic politics remain front and centre, with President Cyril Ramaphosa expected to reshuffle his Cabinet in the coming days. As a reminder, he will deliver his State of the Nation Address (SONA) on Thursday.