* Rand could break support barrier if ECB, Fed disappoint
* July PMI data due at 0900 GMT
JOHANNESBURG Aug 1 (Reuters) – South Africa’s rand opened
slightly firmer against the dollar on Wednesday but looked ripe
for a test of the 8.30 support barrier in the trading day.
The rand nudged up just 0.12 percent to 8.2540 to
the dollar at 0640 GMT, off a 8.2675 close in the New York
session on Tuesday.
The currency had looked set to test 8.15 and then 8.11
resistance levels in the last two sessions.
However, the unit pulled back to just below 8.30 overnight
on dollar demand from New York investors trying to cover against
risky positions ahead of a European Central Bank policy meeting
on Thursday.
“We didn’t manage to break the 8.305 (dollar) resistance
area in New York trading, and above there, the 8.370 level
should offer further resistance,” said Warrick Butler, a rand
trader at Standard Bank.
The rand has hit a low of 8.29 so far on Wednesday, making a
break of 8.30 within reach.
Investors will also be watching for the Federal Reserve’s
monetary policy statement later in the session. The market is
expecting further easing to prop up the slowing U.S. economy.
Continued…
