The JSE traded softer following the release of the US jobs report this afternoon which saw the non-farm payroll number printed at 390,00 versus the 325,000 that was expected.
Unemployment is at 3.6% but the expectation was for unemployment to print at 3.5%.
The local bourse had traded firmer during the session but turned red when the jobs numbers were released during afternoon trade. The JSE lost 0.16% with the All Share Index at 70,920.45 points.
The Rand hardly reacted to the US jobs announcement and was trading at R15.47/$ when the numbers were released but battled the Dollar in the afternoon. The local unit is currently trading around the R15.50/$ level having been as weak as R15.55/$ at one point during the afternoon.
“We have seen the Rand failing to break below the R15.40 level, which is in line with our short-term narrative that the Rand will find it hard to break the R15.40 level convincingly on its own steam as a new catalyst is needed for that,” says forex trading house TreasuryONE.
“With the better than expected non-farm numbers, we would expect Gold to lose a little ground, which turned out to be the case,” comments TreasuryONE.
Gold is currently trading at $1,859 per ounce after trading around the $1,870 level before the release of the jobs numbers. Platinum is trading at $1,019 and palladium at $1,995. Despite a promise of an increase in production by the OPEC countries, we have not seen a move in the Brent crude price, currently at $119 per barrel.
