FxWirePro: USD/ZAR edges higher from 7-week lows, Rand ends 2 days of strong gains
Friday, October 16, 2015 9:20 AM UTC
- South Africa's rand on Friday ended a recent rally after stronger-than-expected U.S. inflation data lifted the dollar, while stocks were expected to open higher
- Rand failed to breach the key 13.00 resistance level on Thursday, and as of 0645 GMT today had weakened 0.35 percent to 13.0945 per dollar
- USD/ZAR edged higher from 7-week lows of 13.0276 hit yesterday, and is currently trading at 13.1209, slightly lower from day's highs at 13.1610
- Government bonds were weaker as yields inched up, with the benchmark paper due in 2026 adding 1.5 basis points to 8.155 percent
- The rand, however, faces a rough ride against a resilient dollar, close below 13.0700 could see the pair at 12.80 levels
- A raft of local releases will be in focus, with inflation, retail sales and the finance minister's medium term budget speech due next Wednesday
- USD/ZAR has immediate resistance at 13.2236 (Oct 15 high) and support at 13.0764 (cloud base)