Rand Edges Higher Defying Continued Headwinds

Spot USD/ZAR has edged higher this morning, even as S&P Global Ratings revised South Africa's credit rating outlook to "stable" from "positive." The rate last changes hands at ZAR18.5686, down ~380 pips on the session. Bears need losses past the 20-EMA/Mar 3 low at ZAR18.1773/18.0825 to eye a deeper sell-off. Bulls keep an eye on the round figure of ZAR19.0000.

• From a cross-asset viewpoint, both the aggregate BBG Commodity Index and the precious metals subindex are marginally better off at typing, while South Africa's local-currency bond yields have advanced across the curve.
• South Africa's current account deficit deepened to ZAR174bn in 4Q2022 from ZAR18bn prior but was smaller than the expected ZAR185bn. Still, the deficit as a proportion of GDP was 2.6%, slightly exceeding the 2.5% consensus forecast.