By the close of trading yesterday, the South African rand strengthened against the US dollar.

  • The strength came following an easing in risk aversion, with investors slowly returning to perceived riskier assets.
  • Iraq’s parliament passed a resolution Sunday calling for the government to end the presence of foreign troops in the country in the wake of a U.S. airstrike that killed a top Iranian general. The resolution asks Iraq’s government to cancel the request for assistance from the U.S.-led coalition operating in the country.
  • Meanwhile, South Africa’s IHS Markit SA purchasing managers’ index (PMI) recorded its sharpest rate of decline since October 2018 in December, due to intensified load-shedding and weak demand.
  • In the US, services PMI advanced in December, indicating continued expansion.
  • The yield on benchmark government bonds fell yesterday. The yield on 2020 bond declined to 6.77% while that for the longer-dated 2026 issue fell to 8.24%.

In early trade on Tuesday, the US dollar is trading 0.2% lower against the South African rand at R14.1840, while the euro is trading 0.2% lower at R15.8745.  The British pound has declined 0.1% against the South African rand to trade at R18.6866.

By the close of trade on Monday, the euro declined against most of the major currencies.

  • In the Eurozone, services PMI ticked up in December, signaling that the firms were optimistic.
  • Investor morale jumped for the third month in a row in January, on account of positive signs an easing in US-China trade tensions.
  • Producer price index (PPI) slightly improved in November, caused by a less prominent fall in energy prices. Meanwhile in Germany, services sector activity increased at its strongest pace in four months in December.
  • Retail sales rebounded on a monthly basis in November.

In early trade on Tuesday, the euro has marginally slipped against the US dollar to trade at $1.1192, while it has weakened 0.1% against the British pound to trade at GBP0.8495.

TECHNICAL ANALYSIS

USD to ZAR Stats

Stats Data Last 30 days Last 90 days
High 14.7889 15.2774
Low 14.0020 14.0020
Average 14.3007 14.6236
Volatility 0.63% 0.6%

CNY to ZAR Stats

Stats Data Last 30 days Last 90 days
High 2.10236 2.14687
Low 2.00598 2.00598
Average 2.04436 2.08014
Volatility 0.62% 0.58%

AUD to ZAR Stats

Stats Data Last 30 days Last 90 days
High 10.0855 10.4123
Low 9.79606 9.79606
Average 9.89183 10.0223
Volatility 0.45% 0.56%

GBP to ZAR Stats

Stats Data Last 30 days Last 90 days
High 19.4417 19.5471
Low 18.3101 18.3101
Average 18.7777 18.9283
Volatility 0.57% 0.65%

EUR to ZAR Stats

Stats Data Last 30 days Last 90 days
High 16.4049 16.8544
Low 15.6814 15.6814
Average 15.9240 16.2175
Volatility 0.54% 0.59%