USD/ZAR Fluctuates After Foray Above Key Resistance

Higher US Tsy yields have helped push USD/ZAR through key resistance from the 76.4% retracement of the Jun 1 - Jul 27 downleg (19.3301) yesterday, with the pair holding close to that level this morning. There has been little in the way of notable domestic headlines crossing the wires but the prospect of interest rates staying "higher for longer" has applied renewed pressure to the South African rand.

• USD/ZAR last deals at 19.3100, now a touch lower on the day, after printing its best levels since Jun 5. A move through the 19.5 mark would give bulls a green light for targeting the 19.9204 all-time high. Bears look for a pullback towards Sep 20 low of 18.6825.
• SAGB yields are slightly higher on a lead from core markets where several psychological levels have been tested today; curve runs slightly flatter at typing. South Africa's 10-year breakeven inflation rate has climbed to 7.34%, with recent cyclical high of 7.41% in sight.
• The commodity complex is softer and so are precious metals, with the relevant BBG subindex down 0.4% on the day.
• Eskom is expected to provide an update on its loadshedding schedule later today. It is currently moving between suspended outages and Stage 2 power cuts.