* Buying the rand as it dips seen as strategy
* ADP numbers could give clues on U.S unemployment
JOHANNESBURG, April 4 (Reuters) – South Africa’s rand and
bonds opened weaker on Wednesday against the dollar after a
release of the Federal Reserve’s minutes disappointed investors
betting on further monetary easing for the world’s biggest
economy.
The rand was little changed against the greenback
at 0606 GMT, trading at 7.74 from New York’s close of 7.7450.
“I think the big story of the night is the FOMC, they were
slightly less dovish and more hawkish than everyone actually
expected, which put the dollar on the front foot,” said Lee
Naisbitt, a trader at Rand Merchant Bank.
“For now 7.77 is first resistance through to 7.82, obviously
we got the worry that we have non-farm payrolls on Friday being
a holiday as well, we are going to have very thin market
conditions, we could come in on Tuesday considerably higher.”
Traders will watch closely the March ADP employment report
in the United States, which could shed some light on the U.S
non-farm payrolls due for release at the end of the week.
With little trading expected ahead of the four-day Easter
holiday starting on Friday, the rand could firm when traders
return to their desks next week should the unemployment figures
show an improvement.
Bond yields rose 5.5 basis points each, with the yield on
the 2015 issue up to 6.780 percent and that on the
2026 issue to 8.485 percent.
On the bourse, the JSE’s blue-chip Top-40 March futures
contract was down over half a percent before the 0700
GMT start of trade, pointing to a negative start.
(Reporting by Vuyani Ndaba; editing by David Dolan)
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