USD/ZAR blipped higher into the Asia open as...>

RAND: USD/ZAR blipped higher into the Asia open as S&P cut South Africa's credit

rating to BB- from BB and noted that the cost of servicing public debt incurred

by the nation will reach 6.5% of GDP by 2023. The government expressed

disappointment and pointed to the need of urgent structural reforms. The

reaction move was very limited and USD/ZAR has already wiped it out, sinking

into negative territory. It last changes hands -172 pips at ZAR18.1504.

- A break below the ZAR18.0 mark would bring Apr 9 low of ZAR17.8512 into focus.

This is a key near-term support and a break here would see bears regain control,

opening up Mar 31 low of ZAR17.6741. A clearance of Apr 24 high of ZAR19.1871

would give bulls a fresh impetus & allow to target Apr 6 high of ZAR19.3508.

- South African FinMin Mboweni said yesterday that local economy may shrink 6.4%

Y/Y this year, more than the 5.8% contraction forecast by the IMF.

- The African nation is slightly relaxing some of its lockdown measures on

Friday after five weeks under strict regulations.

- South Africa's trade balance headlines the local docket today, with little

more of note left on this week's docket.