Rand struggles
The Rand continues to struggle despite the weaker US dollar. The US dollar has moved out to the 1.0630 level against the Euro, with most EM currencies catching the tailwinds of this move except the Rand. The Rand is still stuck in the R18.35-50 range, with local issues anchoring the Rand with little strength. We have seen the Rand touching the R18.50 level, but like it has done a couple of times, it has bounced back off the level, and we are currently trading at R18.40. We are concerned with the slackness of the Rand retreating back from these levels, which opens up a test of the 2022 high of R18.58.
South African data is mixed
The South African trade balance came in at a deficit of R23 bn, while the unemployment rate came down slightly to 32.7% after it printed at 32.9% in the third quarter of last year. While the impact on the Rand was negligible, but this serves as a testament that the overall health of the economy is not looking great.
