Wednesday 10 April 2013

Consumer confidence at 9 year low

Trade report 10/04/2013 

The ZAR and other emerging market currencies have all performed impressively over the past week, the reason being the on-going effects of persistent JPY weakness.  The USD-ZAR has gained support toward the 8.9500 mark and is expected to trade between 8.87 – 8.9800 today.

On Tuesday a key survey by the Bureau of Economic Research (BER) found that consumer confidence fell to a nine-year low in the first quarter of this year. The BER survey results only added to negative news on the retail sector and the mounting concern that economic growth could fall short of expectations this year.

When looking at the latest Chinese trade data one finds further evidence of an uneven recovery in the global economy. China’s first quarter trade results shows that trade with the US rose by 10.8 per cent from last year to $118.2bn, yet trade between China and the EU fell 1.9per cent to $124.4bn from a year earlier.

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