The rand was last trading at 7.7550 to the dollar, one percent weaker than Monday's New York close of 7.6785. It hit a session low of 7.7617. "There's some good demand for dollars towards 7.70 with daily resistance in the 7.75/78 area," said a local dealer, adding that while the rand could fall to 7.80, those levels would attract exporter dollar sales and cap sharper losses on the rand. In the absence of market moving data locally, the rand took direction from abroad, with news that Moody's could cut the credit ratings of France and Austria, after it downgraded six other European nations, weighing on sentiment. Euro zone finance ministers are expected to approve a new bailout deal for Greece on Wednesday but Moody's news was a reminder that a Greek resolution would not be the end of the region's problems and this would likely leave the rand vulnerable, said Standard Bank in a note. On fixed income, the yield on the 2015 bond rose 3.5 basis points to 6.61 percent and that on the 2026 note rose four basis points to 8.285 percent. Bonds are likely to stay in familiar ranges ahead of the Finance Minister Pravin Gordhan's Budget next Wednesday. On Wednesday, eyes will be on local retail sales data out at 1100 GMT. The market is expecting December retail sales growth to slow to 6.5 percent year-on-year and a stronger print could be supportive of the rand currency. Copyright Reuters, 2012