JOHANNESBURG, Aug 1 (Reuters) – South Africa’s rand was steady early on Thursday, ahead of a purchasing managers’ index (PMI) survey for the local manufacturing sector.

At 0727 GMT, the rand traded at 18.2275 against the dollar, not far from its previous close.

The Absa PMI for July is set to be released at 0900 GMT, and should shed light on manufacturing conditions in Africa’s most industrialised economy. Local investors will also turn their focus toward July vehicle sales data.

The rand was supported by the Federal Reserve Chair Jerome Powell’s softening tone on Wednesday, fuelling expectations of a September interest rate cut by the Fed.

“The rand remains volatile as financial market expectations have shifted around the timing and speed of the anticipated US interest rate cutting cycle,” said Investec chief economist Annabel Bishop.

On the stock market, the Top-40 index was down 0.14%.

South Africa’s benchmark 2030 government bond was marginally stronger in early deals, with the yield down 1 basis point to 9.395%.

(Reporting by Bhargav Acharya; Editing by Bernadette Baum)