The South African rand slipped in early trade on Wednesday, pressured by global risk aversion tied to fading prospects of a permanent U.S.-Iran peace deal, while traders awaited a local manufacturing purchasing managers' index and vehicle sales data for June.

  • At 0709 GMT the rand traded at 16.44 against the dollar FX_IDC:USDZAR, about 0.4% weaker than its previous close.

  • An Absa PMI survey is set to be released at 0900 GMT and will shed light on manufacturing conditions in Africa's most industrialised economy.

  • The nation's factory sentiment eased in May as activity and demand slowed, though it remained in expansionary territory for a second consecutive month.

  • Investors will then turn their focus to vehicle sales (ZAVEHY=ECI) data due around 1200 GMT, which will give a snapshot of consumer demand for big-ticket items. Car sales rose 12.8% in May.

  • On the Johannesburg Stock Exchange, the Top-40 index TVC:SA40 was down 1% in early trade.

  • South Africa's benchmark 2035 government bond (ZAR2035=) also weakened, with the yield rising 6 basis points to 8.355%.