Rand Reverses Initial Loss, Moody's Praises Eskom Debt-Relief Plan

Spot USD/ZAR has now given away its initial gains, outpacing the move away from highs in the BBDXY index. The rate changes hands at ZAR18.1203 down ~30pips on the day, after coming under pressure Wednesday as upbeat Chinese data supported commodity currencies. Bears look for losses past the 20-EMA at ZAR18.0018, with bulls keeping an eye on Feb 28 high of ZAR18.5147, followed by key resistance from Oct 13 high of ZAR18.5815.

• The Rand may have drawn some support from Moody's comment that the government's debt-relief plan for Eskom is credit positive.
• The composite BBG Commodity Index has edged lower, while the precious metals subindex has shed ~0.6% this morning.
• Local-currency bond yields have eased off earlier highs but remain above neutral levels, with 10-year inflation breakeven rate rising to a one-week high.
• No major data releases in South Africa today, with just electricity output data coming up later today.
• Participants are on the lookout for clues on the imminent Cabinet reshuffle, which the presidency said should be announced within days.