USD/ZAR popped higher early on, supported by...>

RAND: USD/ZAR popped higher early on, supported by modest risk aversion coupled

with concerns over the outlook for South Africa's sovereign debt. Over the

weekend, BBG cited a document presented by FinMin Tito Mboweni to lawmakers,

which notes that debt will top 100% of GDP in 2025 and reach nearly 114% by the

end of this decade. As a reminder, on Wednesday the gov't will unveil

supplementary budget to help fund a ZAR500bn stimulus package.

- The rate has ebbed off its earlier high and last deals at ZAR17.4220, about

900 pips better off. A convincing break above the 38.2% retracement of the Apr 6

- Jun 10 slide at ZAR17.4892 would shift focus to May 29 high of ZAR17.6649.

Bears look for a fall below the 100-DMA at ZAR17.1664, which has limited losses

recently, would expose the ZAR17.0000 mark.

- Looking ahead, South Africa's quarterly unemployment comes out on Tuesday,

while monthly CPI and retial sales are due Wednesday.