South African rand steady as budget, trade data and AGOA review loom

The South African rand was little changed in early trade on Friday at 16.6175 against the dollar, as investors waited for domestic budget and trade balance data while watching a key US trade review and next week’s local government elections.

The rand traded at 0630 GMT at 16.6175, little changed from its previous close.

Trade and budget data in focus

Later on Friday, the South African Revenue Service is due to release September trade balance figures. Analysts expect a surplus of 16.40 billion rand, equivalent to $987.32 million.

The National Treasury will also publish September budget balance data.

AGOA review and elections

Market participants are awaiting Monday’s outcome of the annual review of South Africa’s eligibility for African Growth and Opportunity Act benefits in 2027. Local government elections are scheduled for Wednesday.

“USD-ZAR is trading cautiously, with markets reluctant to establish significant positions ahead of Monday’s AGOA deadline and Wednesday’s local government elections,” ETM Analytics said in a note.

Bond market

South Africa’s benchmark 2035 government bond was slightly firmer in early deals, with the yield falling 2.5 basis points to 8.53%.