South Africa Rand Trades Flat Ahead of Economic Data, Bond Auction
The South African rand is trading relatively stable against the US dollar, euro, and British pound on Tuesday ahead of key economic data and a bond auction.
The rand traded rangebound in yesterday’s session and has maintained its momentum this morning as investors continue to monitor developments in the Middle East following an announcement of US-Iran talks in Qatar.
Local traders look ahead to domestic economic data points due this week and monitor anti-immigration protests planned for today, First National Bank (FNB) said in a brief.
The Bank said the Rand is changing hands at R16.45 to the US dollar, R18.74 to the euro and R21.76 to the pound. Gold is trading at $3,979.56 per ounce on Tuesday.
The yellow metal was weaker on Monday, pressured by reduced demand for safe-haven assets amid easing concerns over a severe disruption to the Middle East energy supplies, while traders anticipate another possible rate hike from the US Federal Reserve this year.
Brent crude oil is trading at ~$73.63/barrel, while WTI is hovering below $70 per barrel. Oil prices have stabilised after a positive run on Monday following an interim ceasefire agreement between the US and Iran, which has led to continued movement of vessels through the key shipping route.
On the economic calendar, South Africa will release M3 Money Supply and Private Sector Credit data at 08:00 SAST. Later in the day, South Africa will hold bond auctions for the 2033, 2038, and 2042 tenors.
The market also awaits the Quarterly Employment Statistics, scheduled for 11:30. United States (US) home prices and job openings data are also due out later this afternoon. Stronger US Dollar Keeps South African Rand on Edge
