THE rand continued to hold firm at midday today, tracking a record gold price, with the euro also stronger against the greenback. Eyes will be on a raft of US data out later today.
In noon trade, the rand was bid at R7.3809/$ from R7.4446/$ at its previous close. It was bid at R11.1170/€ from its previous close of R11.1326/€ and was at R12.3365/£ from R12.3492/£.
The euro was bid at $1.5034 from $1.4963 overnight.
Gold last quoted at $1,1177.78/oz.
A local trader said: "We are seeing interest below 7.40 against the dollar, and if it breaks 7.38 we could see last week's levels of 7.35, and then 7.33.
The euro is strong, as is gold, pushing rand strength."
RMB analysts John Cairns and Nema Ramkhelawan said earlier in a morning report: "The big risks today are centred at 15:30. Because of the US holiday tomorrow, Thursday's data are squeezed in with the usual Wednesday data, implying four key numbers come out at the same time. Any effect on US dollar/rand would most likely come via euro/US dollar and the all-important 1.5000.
"From a technical perspective, US dollar/rand remains range bound. Moves above 7.6200 would signal that downside pressures are reducing. The longer-term signals are at important levels, trading below 200-week moving averages, suggesting the 7.000 target still exists," Cairns and Ramkhelawan concluded.
Dow Jones Newswires said that in early trade, the euro had firmed to $1.5011 from $1.4969 in late New York business yesterday.
Investors were focused on the US data due later in the day. A Dow Jones Newswires poll of economists suggested that October's durable goods orders data, due later today, would show a rise of 0.5% from 1.4% previously, while the Reuters/University of Michigan consumer confidence index for November, is also duelater today, was expected to fall to 66.8 from 70.6 the previous month.
Meanwhile, spot gold touched a fresh record high at $1180.10 per troy ounce and, at in early trade, was trading at $1176.35, up $6.05 from the New York close.
"In the run-up to Thanksgiving it would appear the desire to lock in profit is still not greater than that to accumulate new long positions," said Barclays Capital in a research note.
