The rand was range bound in thin early trade on Wednesday after there were few fresh developments overnight.

Local conditions are thin this week as it is only a two-day trading week with South African markets closed for three public holidays – last Monday, tomorrow and Friday.

"I think we will see a bit of a flurry up to lunchtime as the rand consolidates ahead of the long weekend," said a local trader.

By 08.43am the rand was bid at 7.6135 to the dollar from a previous close of 7.6037. It was bid at 11.8839 to the euro from a previous 11.8253 and at 14.9567 against sterling from 14.9527 before.

The euro was bid at $1.5607 from $1.5567 overnight, while gold was quoted at $874.15 a troy ounce from $869.25/oz overnight.

The trader said the rand was slightly weaker in response to the local money supply data released this morning. Money supply was in line, but PSCE was worse than expected.

The rate of growth of South Africa's broad M3 money supply measure rose by 21.00 percent in the year to end-March from a revised 20.86 percent (21.07 percent) in the year to end-February, the South African Reserve Bank said on Wednesday.

Credit extension to the private sector (PSCE) grew at a rate of 22.62 percent year-on-year from 20.79 percent in February.

The rate of growth in PSCE was expected to have increased at 20.5 percent year-on-year in March, an I-Net Bridge poll found.

M3 money supply aggregate growth, meanwhile, was expected to have increased in March at 20.7 percent year-on-year.

Markets are now eyeing the upcoming FOMC decision on US interest rates, the outcome of the Q1 US GDP data and the local trade data later.

The trader noted there is quite a bit happening on the international stage while local markets are on holiday, so it will be interesting to see where the rand stands on Monday when local trader return to their desks.

ETM analysts said counting against the rand is the sharp retreat in metals prices which has impacted mildly on the sentiment of other commodity currencies including the AUD.

"That said, investors will be aware of the very weak link which now exists between the ZAR and metals prices. It broke down in 2006 and has not been re-established to any significant extent. Arguably more important has been the weakness seen in many emerging market currencies. Emerging European currencies have lost ground in sympathy with the EUR, whilst the BRL has come under pressure for its widening current account deficit," they said.

ETM expects the rand to grade in a 7.52 to 7.67 range for the day.

Bonds kick up on poor PSCE data

Bonds weakened after the worse-than-expected credit extension data earlier on Wednesday morning, but a dealer noted that the market could now be coming in for a little buying interest at the weaker levels.

By 08.56am the short-term government R153 bond was at 10.365 percent from its previous close of 10.300 percent, while the medium-term R157 was at 9.510 percent from 9.460 percent at its previous close. The longer-term R186 bond was bid at 9.370 percent from its previous close of 9.295 percent.

I-Net Bridge