Money SA economy
The rand softened in morning trade on Tuesday, tracking a slightly weaker euro.
At 08.57am local time the rand was bid at R7.36 to the dollar, R9.30 to the euro and R11.35 to the pound. The euro was bid at $1.2633 from $1.2663 overnight.
A trader said that the local currency was shadowing the euro's movement against the dollar, while data out later in the US expected to provide further direction.
RMB analysts noted in a morning report that after a break on Friday the slide in US equities on the back of fears over the economy have resumed, however, the impact on the rand remains muted, only coming through the reaction in euro/US dollar. "This puts US dollar/rand up at the mid-7.30s this morning but with a continued upside bias. A move through resistance at 7.40/42 only looks likely on a sustained break in euro/US dollar below 1.2600," the analysts said.
RMB pointed to event risk today, with Eurozone unemployment and inflation data this morning and US housing prices and consumer confidence this afternoon, along with other secondary data.
Dow Jones Newswires reported that the market's focus is shifting to how US and euro-zone indicators and governments' economic stance affects equities, traders said. Investors will closely watch a press conference after the European Central Bank's policy-setting meeting Thursday, and US non-farm payrolls data for August due Friday, traders said.
