Rand Finds Poise Despite Wider-Than-Expected Trade Deficit In South Africa

USD/ZAR has come under pressure as the BBDXY index has lost ground. The rate has moved into negative territory and last deals at ZAR18.3792, down ~330 pips on the session. Familiar technical levels are intact.

• Local-currency bond yields are off earlier highs but above neutral levels. The FTSE/JSE Africa All Share Index has crept higher for the second consecutive day but remains limited by the recently breached 50-DMA.
• South Africa's trade deficit was ZAR23.1bn in January, exceeding the expectations of a ZAR7.5bn shortfall. Monthly budget balance came in at -ZAR88.8bn versus the expected -ZAR65.0bn.
• Jobs data earlier in the day revealed that the unemployment rate slipped to 32.7%, the lowest level in two years, printing marginally above the consensus call.
• Eskom confirmed that it will ramp up load-shedding to Stage 4 this afternoon and alternate between Stages 4 and 5 thereafter, until further notice.