* Volumes expected to be thin, to pick up mid-week
* Rand gets reprieve as investors stay out
* Bonds weak ahead of auction
JOHANNESBURG, June 26 (Reuters) – South Africa’s rand firmed
in early trade on Tuesday, getting a temporary reprieve against
the dollar as investors preferred to stay out of the market due
to coming policy meetings at home and abroad.
The rand was at 8.4674, 0.25 percent firmer than
its 8.4875 New York close on Monday. Analysts say technical
signals show a temporary breather in the overall bearish trend
for the currency.
“We would not be surprised to see some stalling before
decisive breakouts occur,” said Judy Padayachee, technical
strategist for Absa Capital.
However the rand is expected to get back on a weaker path
going into next month.
“Bigger picture, we remain rand bearish into the third
quarter and target 8.80-9.00 against the dollar,” Padayachee
said.
For the session the rand should find support at 8.50, a key
technical level.
Continued…
