• USD/ZAR dipped on Wednesday as rand firmed as investors digested South African retail sales data and awaited U.S. Federal Reserve policy meeting later in the day.
• South African retail sales rose 2.9% year on year in October, following a revised 3.0% increase in September, data from Statistics South Africa showed on Wednesday...
• Seasonally adjusted retail sales increased by 0.9% month on month in October, indicating a solid rebound in consumer spending
• Global investor attention will later turn to an expected 25 basis point interest rate cut by the Federal Reserve, which could be accompanied by hawkish policy guidance.
• Like other risk-sensitive currencies, the rand often takes cues from global drivers such as U.S. policy and economic data in addition to domestic releases.
• Immediate resistance is located at 17.113(SMA20), any close above will push the pair towards 17.218(38.2%fib).
• Strong support is seen at 16.904(23.6%fib) and break below could take the pair towards 16.855(Lower BB)
Recommendation: Good to sell 17.000 with stop loss of 17.300 and target price of 16.900
