Rand flat in choppy trade as US data comes in better than expected

However, that was not bourne out by the wage numbers, with average hourly earnings for all employees staying stable at growth of 2.7% in June, while the market expected 2.8%.

The Fed will be weary of adopting a more hwakish stance in an environment of subdued inflationary pressure.

Support for this was found in the release of the Fed’s minutes from its last meeting on Thursday, in which rates were hiked to a present 2%. The minutes reflected that Fed members felt two further hikes in 2018 were deemed to be sufficient when measured against present economic conditions.

However, some analysts had earlier felt there was room for three hikes in 2018.

FxPro analysts noted that the federal open market committee (FOMC) highlighted some increased risks to the US economy, particularly regarding trade relationships. But it still held the view that another two hikes would be appropriate for the year.

“Despite the hawkish policy, the FOMC minutes tempered the tone with concerns and risks, making the dollar less attractive,” FxPro said.

At 3pm, the rand was at R13.5399 to the dollar from R13.5361. It was at R15.9029 to the euro from R15.8270, and R17.9397 to the pound from R17.8949

The euro was at $1.1744 from $1.1692.

Local bonds were firmer, with the R186 bid at 8.66% from 8.72% and the R207 at 7.41% from 7.42%.

The US bond market continues to price in a central policy rate mistake, with yields on the 10-year benchmark falling, reflecting the view that higher rates in the US might unleash a deflationary spell over the longer term.

The US 10-year was last seen at 2.8132% from 2.8333%.