South African rand flat ahead of manufacturing data, car sales data
- The rand traded at 16.6075 against the dollar , broadly unchanged from its previous close
JOHANNESBURG: The South African rand was flat in early trade on Monday ahead of the release of a local manufacturing purchasing managers’ index (PMI) and vehicle sales data for April.
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At 0639 GMT the rand traded at 16.6075 against the dollar , broadly unchanged from its previous close.
An Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa’s most industrialised economy.
South African manufacturing sentiment remained weak in March, with respondents expressing concern about the impact of the Iran war although business activity is yet to take a serious knock.
Investors will then turn their focus to vehicle sales (ZAVEHY=ECI), opens new tab data due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items.
Nedbank economists, in a research note, said they expect car sales to contract by 16% in April, largely reflecting more public holidays than in March and softer demand amid uncertainty over the war in Iran.
“Higher fuel prices and a shifting interest rate outlook are likely to weigh on consumer confidence and, in turn, vehicle demand. Even so, the decline comes off a high base,” said the note.
South Africa’s benchmark 2035 government bond was stronger in early deals, as the yield fell 3.5 basis points to 8.76%.