USD/ZAR Breaches Recent Lows Despite Worse Than Expected Trade & Budget Data

USD/ZAR remains heavy and pierces support from Nov 24 low of ZAR16.9073 at typing, with South Africa's trade and budget data having little impact on price action. The rate last deals at ZAR16.9059, down ~940 pips on the session, with bears now looking for further sales towards Aug 25 low of ZAR16.7102.

• South Africa's trade balance unexpectedly flipped into a deficit of ZAR4.3bn in October from a surplus of ZAR26.2bn in September, while budget deficit widened more than expected to ZAR40.6bn in October from ZAR3.3bn prior.
• The impressive rally in FTSE/JSE Africa Top40 Index continues, with the equity benchmark now ~2.9% higher on the day and printing its best levels since Apr 5.
• South Africa's yield curve has bear steepened. 10-year breakeven inflation rate has crept higher and last sits at 6.24%.
• The BBG Commodity Index extends gains and last sits ~1.4% higher on the day, with the precious metals subindex last ~1% better off.