Rand Rangebound As Eskom Resumes Loadshedding

Spot USD/ZAR has traded sideways today, struggling for a clear direction. The pair sits at 18.7976, down ~420 pips on the session. Bears continue to target Sep 20 low of 18.6825, while bulls look for a break above Oct 6 high of 19.6399.

• Eskom resumed loadshedding at Stage 2/3, which comes after the longest streak of no loadshedding since late 2022. Energy analyst Pieter Jordan told BusinessTech that this exceptional result was only possible due to very low demand and considerable peaking effort by the Systems Operator. However, Eskom is still likely unable to supply enough electricity to meet typical demand.
• South Africa's M3 money supply rose 7.67% Y/Y in September, missing the +8.00% consensus call. However, private sector credit grew 4.60% Y/Y, overshooting the +3.50% median estimate.
• Monthly budget balance will cross the wires at 12:00GMT/14:00SAST. This comes ahead of Finance Minister Godongwana's mini budget statement due this Wednesday.
• Elsewhere, President Ramaphosa will address the nation tonight and there is speculation that he might announce a public holiday.