* Rand looks to push stronger and test 8.05
* Vehicle sales data due at 0900 GMT
* Results of govt bond auction after 0900 GMT
JOHANNESBURG, July 3 (Reuters) – The rand firmed to a 7-week
high on Tuesday and looked set to challenge a key resistance
level at 8.08 to the dollar as investors’ appetite for risk held
up, causing flows into the domestic debt market.
The rand was up 0.6 percent at 8.09 to the dollar
by 0640 GMT, compared to an 8.1550 close in the New York market
on Monday. The unit is approaching its 100-day exponential
moving average, having blasted through the 50-day average –
another important level – at the end of last week.
After that, charts suggest the currency will be looking at
8.05.
“Given the rand’s support at 8.20 a breach of 8.05 would
signal that the rand bulls are finding further traction,” said
Judy Padayachee, a technical strategist at Absa Capital.
“My previous recommendation had been to short the rand at
8.20 but if the rand goes below 8.05 then that short
recommendation is no longer in place. Such a breakout would then
open up the 7.70 level.”
Dealers say more positive news out of the euro region would
be needed to push the rand through the psychologically key 8
rand level.
Continued…
