Rand struggles for direction as markets absorb dire economic reports

The rand struggled for a clear direction on Tuesday, as markets digested poor manufacturing data that could indicate that looser monetary policy is on the way from global central banks.

The US and China agreed to recommence trade negotiations after a meeting at the G20 summit last week. The trade truce boosted risk appetite, pushing the rand to its best level in three months on Monday. The US has since threatened to impose tariffs on $4bn worth of EU goods over an aircraft dispute.Mercato Financial Services analyst Nico du Plessis said in a note, adding that while the rand could still move below R14/$, investors may need to be patient.

Investors will be closely watching the US nonfarm payroll figures for May which will be released on Friday for indications of the size and timing of Fed cuts.

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