South African rand on front foot with domestic data in focus
JOHANNESBURG, Sept 30 (Reuters) -The South African rand extended last week's gains in early trade on Monday, as investors looked to a handful of data releases for further signs of an improvement in the domestic economy.
At 0650 GMT, the rand traded at 17.0375 against the dollar ZAR=D3, about 0.5% stronger than its closing level on Friday.
Central bank data on Monday showed a pickup in August private sector credit growth to 4.95% year-on-year ZACRED=ECI, a positive sign which may help Africa's most industrialised economy build momentum in the second half of the year.
August trade ZATBAL=ECI and budget ZABUDM=ECI figures due later in the day are also expected to show improvement, reflecting better terms of trade and seasonal factors.
ETM Analytics said in a research note that the rand could break below 17 to the dollar this week as the U.S. currency remains on the defensive and inflows into the South African bond market are supportive.
The benchmark 2030 government bond ZAR2030= was flat in early deals, the yield at 8.8%.
Reporting by Alexander Winning, editing by Ed Osmond
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