Thursday, 5 September 2013

Rand steady ahead of busy week-end

Trade report 05/09/2013
 
ZAR outlook

USD/ZAR expected range: 10.2000 – 10.3600

The Rand has held steady against the USD overnight and was trading around 10.26 to the dollar this morning. With some important data due out today this will likely influence the ZAR as it may strengthen expectations that the US Central Bank will soon pull back from purchases that have injected money into emerging markets.


Local news

In local news the Rand rallied around news that 2 of the 7 gold producers affected by strike action, have come to an agreement over wage negotiations.  As EMs attempt to protect their currencies, Finance Minister Gordhan has hinted at implementing efforts to reduce strike action as well as gradual reserve building to help address the underlying causes of the ZARs vulnerability.

International news

At the Emerging economies meeting in Russia this week countries will be discussing the FEDs expected tapering of QE and the risks to the global market.  With plenty of important data out today and tomorrow it is potentially a very volatile time for the Rand, with investors also keeping an eye on the lingering Syrian crisis.

TODAYS KEY DATA POINTS:

• 11:00 GB BoE rate announcement
• 12:15 US ADP employment change
• 12:30 US Initial jobless claims
• 14:00 US ISM non-manufacturing composite


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