Publications
Partners
Johannesburg - The rand gained 0.5% on the dollar early on Thursday, buoyed by upbeat Chinese trade data that showed the world's biggest commodities consumer was importing more than expected.
The resource-heavy rand strengthened to R9.8965 from a R9.9500 close in New York on Wednesday.
China has been South Africa's biggest bilateral trading partner for the past four years and is a major consumer of its minerals.
"Sentiment has received a solid boost after an impressively strong set of trade numbers from China, which showed imports leaping by 10.9% year-on-year in July, well above forecasts on a 1.0% gain .... suggesting strong domestic demand from the Asian power house," Informa Global Markets said in a note.
The dollar was also pressured by shifting expectations about when the Federal Reserve would withdraw monetary stimulus from the world's biggest economy.
Yields on government bonds dropped 0.4 basis points to 8.16% on the benchmark 2026 issue, tracking strength in the domestic currency.
Mining and manufacturing output data is due out at 09:30 GMT and 11:00 GMT respectively, and will likely shape how markets end the week in South Africa.
Markets will be closed on Friday for a national holiday.
Manufacturing output is expected to have increased to 3.8 percent year-on-year in June, from 2.2% in May, according to a Reuters survey. This could add to the rand's rally,
Mining output fell 0.7% year-on-year in May.
"The plight of AngloGold, which reported a quarterly loss on Wednesday highlights how miners are likely to continue cutting production, although the China trade data does offer some hope," IGM said.
AngloGold Ashanti [JSE:ANG] swung to a second-quarter loss and promised to cut more costs as a plunging gold price forced the company to reduce staff and scrap its quarterly dividend.
The resource-heavy rand strengthened to R9.8965 from a R9.9500 close in New York on Wednesday.
China has been South Africa's biggest bilateral trading partner for the past four years and is a major consumer of its minerals.
"Sentiment has received a solid boost after an impressively strong set of trade numbers from China, which showed imports leaping by 10.9% year-on-year in July, well above forecasts on a 1.0% gain .... suggesting strong domestic demand from the Asian power house," Informa Global Markets said in a note.
The dollar was also pressured by shifting expectations about when the Federal Reserve would withdraw monetary stimulus from the world's biggest economy.
Yields on government bonds dropped 0.4 basis points to 8.16% on the benchmark 2026 issue, tracking strength in the domestic currency.
Mining and manufacturing output data is due out at 09:30 GMT and 11:00 GMT respectively, and will likely shape how markets end the week in South Africa.
Markets will be closed on Friday for a national holiday.
Manufacturing output is expected to have increased to 3.8 percent year-on-year in June, from 2.2% in May, according to a Reuters survey. This could add to the rand's rally,
Mining output fell 0.7% year-on-year in May.
"The plight of AngloGold, which reported a quarterly loss on Wednesday highlights how miners are likely to continue cutting production, although the China trade data does offer some hope," IGM said.
AngloGold Ashanti [JSE:ANG] swung to a second-quarter loss and promised to cut more costs as a plunging gold price forced the company to reduce staff and scrap its quarterly dividend.
