Trade report 11/10/2013
ZAR outlook
USD/ZAR expected range: 9.8100 – 9.9600
Markets in general have responded positively to a proposal by US Republicans to extend the government borrowing date by 6 weeks. There is no guarantee that this proposal will be passed but the markets have taken it as a positive sign to a resolution being reached and reacted accordingly. The ZAR was trading 0.3% firmer this morning at R9.8760/$.
Local news
Helping the ZAR achieve its near 3 week-high against the USD is the news that Anglo American Platinum announced that their miners in South Africa have started returning to work. The company made a deal with the union bringing the near 2 week strike over job cuts to an end. SA data released yesterday also revealed that August manufacturing production increased by 0.2% but mining production expanded by 2.1% y/y which is encouraging.
International news
The news that US politicians may be close to reaching a deal, even a temporary deal in the debt ceiling debacle, will be a relief to the markets. A temporary deal will mean uncertainty again in a few weeks’ time but for the moment the markets should calm down, especially as data releases from the US have mostly been postponed, implying it will be a quiet day ahead.
TODAYS KEY DATA POINTS (GMT):
• 09:30 SA ILB auction (R800mn)
• 12:30 US PPI y/y (postponed)
• 12:30 US Advance retail sales m/m (postponed)
• 13:55 US Michigan consumer confidence (preliminary)
• 14:00 US Business inventories (postponed)
• 15:00 US Feds Powell speaks on monetary policy
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