Rand rally pauses ahead of mining data

Published Aug 11, 2016

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Johannesburg - South Africa's rand inched weaker early on Thursday, pausing a rally to a new 10-month high with investors treading cautiously ahead of local economic data releases.

Read also: Rand touches 10-month high

At 06h45 GMT, the rand slipped 0.17 percent to 13.3270 per dollar, compared to a New York close of 13.3050.

The rand has gained more than 7 percent in last 1-1/2 weeks, breaking through technical resistance 14.00 and recently 13.50.

Short-term technical indicators suggest the unit is moving toward overbought levels, and its momentum has slowed.

There was cautious trade ahead of local mining and manufacturing data releases by Statistics South Africa.

The local bourse was set to open flat at 07h00 GMT, with the blue chip futures index down 0.12 percent.

The yield on 2026 benchmark government bond was down 0.5 basis points to 8.45 percent.

REUTERS

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