JOHANNESBURG, Sept 5 (Reuters) – The South Africa rand extended gains in early trade on Thursday, as risk sentiment improved on bets of a deeper rate cut this month in the United States, analysts said.

At 0632 GMT, the rand traded at 17.82 against the dollar, about 0.3% firmer than its Wednesday closing level.

The local unit strengthened against a weaker dollar on Wednesday, after U.S. job openings dropped to a 3-1/2-year low in July.

Andre Cilliers, currency strategist at TreasuryONE, said bets of a deeper 50 basis rate cut by the Federal Reserve increased after the data.

“Hopes of a larger Fed rate cut have seen risk sentiment improve and the dollar retreat… We expect the local currency to consolidate further within the recent R17.70/R18.00 range ahead of tomorrow’s payroll numbers,” Cilliers said.

Markets will look to a slew of U.S. jobs data set for Thursday and Friday for further hints on the Fed’s interest rate path.

Like other risk-sensitive currencies, the rand often takes cues from global drivers like U.S. monetary policy in addition to local factors.

Domestic investors will focus on South Africa’s second quarter current account data, set for 0900 GMT on Thursday.

South Africa’s benchmark 2030 government bond  was stronger in early deals, as the yield slipped 3.5 basis points to 9%.

(Reporting by Tannur Anders; Editing by Michael Perry)