Cape Town - The rand, which tried to breach back below R15/$ for first time this year during the European session on Tuesday, was trading in a narrow band around R15.22/$ on Wednesday ahead of South Africa 's crucial budget speech.  "Technical resistance proved too strong as cautious traders eye today’s Budget Speech," said NKC Research in its daily economic report."The local unit hit fresh 2-month highs as it continues to battle its way back from abyss, but the beach of Normandy lies ahead today and it could go either way."(Finance Minister Pravin) Gordhan will attempt to walk the tightrope of reining in fiscal budget while not sabotaging what little economic growth momentum South Africa has left. Should he succeed, we should see the ZAR break through technical barriers around the psychological R15/$ level.

 "If not, the SA currency may well resume its downward slump despite being oversold at present," said NKC.  Adam Phillips of Umkhulu Consulting told Fin24 "it's simple... if it's a ratings-friendly budget the rand will strengthen to R15/$ and below, if not it can quickly go back to R16/$"."If we don't get a (budget) delivery with key issues being spoken about then the ZAR could run very quickly to 16.00, with the bonds giving up gains that they have made in the last month. SOURCE: FIN 24