Trade report 28/10/2013
ZAR outlook
USD/ZAR expected range: 9.7400 – 9.8600
The Rand continues to trade steadily against the USD ahead of a busy week with many data releases scheduled. The recent unimpressive US non-farm payrolls data adds to the theory that the US will delay QE tapering which is good news for the ZAR. The Rand was at R9.8200/$ at 08:45 this morning, largely unchanged from its close in New York on Friday.
Local news
The recent steady trading of the ZAR vs. the USD is widely thought to be more attributed to a USD on the backfoot as opposed to a strong Rand. It is a busy week locally with many data releases and investors will be keeping a close eye on results of private sector growth, vehicle sales and PMI data.
International news
There are some important US data releases scheduled this week including ADP employment, jobless claims and the ISM manufacturing PMI. The Fed is also scheduled to meet on Wednesday which is always a big event, although it is highly unlikely they will make changes to the current QE policy in place. The more likely scenario is one of a pricing for tapering to begin in 2014 which will benefit emerging markets.
TODAYS KEY DATA POINTS (GMT):
• 13:15 US Industrial production
• 14:00 US Pending home sales y/y
• 14:30 US Dallas Fed manufacturing activity
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