Rand Extends Losses, Next Technical Stop For USD/ZAR Are Autumn Highs

Spot USD/ZAR has extended gains amid renewed strength in the BBDXY index, which has attacked yesterday's best levels. The pair has now pierced the 76.4% retracement of the Oct 13 - Jan 12 downleg and last trades at ZAT18.2003, up ~1,690 pips on the day. The next ley layer of resistance is associated with the ZAR18.5024/18.5815 zone, which capped gains as the rate was printing two-year highs last autumn.

• From a cross-asset perspective, local-currency bond yields have reduced earlier losses but remain slightly below neutral levels, with the curve running a tad flatter. The FTSE/JSE Africa All Share Index has moved away from best levels but remains ~0.8% better off. The commodity complex is back to unchanged levels, as the precious metals subindex has shed ~0.4% lodging new cyclical lows.
• President Ramaphosa's reply to the parliamentary debate on his recent SONA caused little in the way of market reaction, with the leader revisiting familiar tropes of his policy speech. He confirmed that "Deputy President Mabuza has indicated his wish to step down from his position, a request I have informed him we are considering and that we are attending to."