Rand trading in narrow range ahead of US data release

The ZAR is still trading in the 9.80 – 9.90 bandwidth and traders expect it to maintain this ahead of the first postponed US data release later today.  The ZAR was barely changed from its overnight close in New York and was at R9.8440/$ at 08:50GMT this morning.

Local news

The main talk in the local markets at the moment are the concerns over the this week’s mini-budget release where it is expected Finance Minister Gordhan will reveal a deterioration in growth expectations and as a result a widening current account deficit.  This may induce a further credit ratings downgrade which would add further pressure to the Rand.

International news

The release of the key US non-farm payroll should give an idea as to the strength and resilience of the US economy although markets may not react as they normally would given it is a pre-government shut-down release.  A positive data release will be good news for the USD but may keep the ZAR on the defensive as it battles local issues as well.

TODAYS KEY DATA POINTS (GMT):

• 09:30 SA Bond auction (R186 – R1.2bn, R2030 – 350mn, R2037 – 800mn)
• 07: 00 SA Leading Indicator
• 08:30 GB Public sector net borrowing (GBP)
• 12:30 US Unemployment rate
• 12:30 US Change in non-farm payrolls
• 14:00 US Richmond Fed manufacturing index

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