USD/ZAR Remains Afloat But Recovery In Precious Metals Likely Limits Gains

Spot USD/ZAR snaps a four-day losing streak and last deals at ZAR18.2900, up ~1,615 pips on the day. A clearance of Mar 8 high of ZAR18.7192 would open up scope for gains towards the ZAR19 figure. Conversely, bears look for losses towards the 50-EMA at ZAR17.8804.

• The rate's advance was initially facilitated by gains in the BBDXY index, but price action of USD/ZAR has diverged from the dollar index on the latter's latest upswing. A strong rebound in precious metals may have shielded the Rand from further losses amid generally negative risk sentiment.
• Local-currency bond yields have unwound their initial gains, while South Africa's 10-year breakeven inflation rate last sits at 6.27%.
• Eskom was granted permission to exceed sulphur dioxide emission limits at its Kusile power station in order to reduce load-shedding and alleviate the ongoing electricity crisis.
• South Africa's January retail sales data will cross the wires at the top of the hour.