Rand Tad Weaker Amid Greenback Outperformance

Post-FOMC greenback strength prompted spot USD/ZAR to cut some losses after hours Wednesday and tick higher this morning, with the dollar outperforming most of its major peers. Fed Chair Powell signalled patience on a pivot to a rate-cutting cycle, noting that "we're not declaring victory at all" and playing down the odds of a move at the March meeting. When this is being typed, USD/ZAR deals at 18.7260, a touch higher on the day.

• From a technical perspective, Jan 22 high of 19.2180 provides the initial target on the topside, while bears keep an eye on Jan 12 low of 18.5385.
• The composite BBG Commodity Index operates 0.4% lower on the day, with the precious metals subindex last seen 0.6% worse off.
• Eskom is implementing Stage 3 loadshedding until further notice due to the need to replenish emergency reserves and insufficient generation capacity.
• Absa Manufacturing PMI will hit the wires at the top of the hour, followed by December electricity production/consumption data at 11:00GMT/13:00SAST.