USD/ZAR stuck in tight range ahead of SA census results release

The USD/ZAR currency pair remained stuck within a narrow range on Tuesday prior to the release of the results of a national census – the fourth in post-apartheid South Africa.

Yesterday the Rand, along with other risk-sensitive currencies, retreated after the clash between the Palestinian group Hamas and Israeli forces rattled global markets, triggering a move into safe haven assets.

“In a world of so much uncertainty, it is not surprising to see the (dollar-rand pair) unable to adopt any clear-cut directional momentum. It is trading in a tight range, and investors are waiting for the dust to settle,” ETM Analytics wrote in an investor note, cited by Reuters.

In terms of local macro data, Statistics South Africa is due to release the official mining and manufacturing production figures for August on Thursday.

Mining output shrank at an annual rate of 3.6% in July, following a revised up 1.3% growth in June. It has been the largest drop in mining activity since February.

Meanwhile, the country’s manufacturing production grew at an annual rate of 2.3% in July, following a revised down 5.5% increase in June. July marked the fourth straight month of industrial activity growth.

As of 7:10 GMT on Tuesday USD/ZAR was edging down 0.16% on the day to trade at 19.2927. The exotic Forex pair moved within a daily range of 19.2410-19.3634.