June 20, 2018 / 6:54 AM / a year ago

South Africa's rand pares early gains, technicals offer support

JOHANNESBURG, June 20 (Reuters) - South Africa’s rand was firmer in early trade on Wednesday in a technical rebound after slumping as much as 2 percent in the previous session to seven-month lows on jitters triggered by the escalating tit-for-tat U.S.-China trade war.

* At 0650 GMT, the rand was up 0.11 percent to 13.7275/dlr, paring earlier gains that had seen it reach 13.65/dlr.

* Technicals point to a rebound or at least support after the currency swung deeply into oversold levels, according to momentum indicators tracked by analysts.

* But dollar strength or a return of rolling power cuts could cap gains and the market will also be looking out for May CPI data due at 0800 GMT.

* In a market note, NKC African Economics pegs the rand’s range at 13.55 to 13.85/dlr.

* In fixed income, the yield for the benchmark government bond due in 2026 was down 1.5 basis points to 9.155 percent.

* Stocks also seen rebounding, partly on technical factors, with the JSE Top-40 futures index up almost 1.2 percent. (Reporting by Ed Stoddard Editing by Raissa Kasolowsky)

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