• USD/ZAR rose on Thursday as greenback was boosted after comments from Fed Chair Jerome Powell.
• Fed Chair Jerome Powell said policymakers are finding it difficult to reach a consensus on the future path of monetary policy and warned that markets should not assume another rate cut in December.
• The Fed cut interest rates by 25 basis points as expected and announced plans to conclude its balance sheet drawdown on December 1..
• Market expectations for another quarter-point Fed rate cut in December have fallen to about 68%, down from nearly full pricing before Wednesday’s decision...
• Meanwhile, South Africa’s producer inflation rose to 2.3% year-on-year in September from 2.1% in August, according to data released by the statistics agency on Thursday.
•The Producer Price Index decreased by 0.1% month on month in September, Statistics South Africa said.
• Immediate resistance is located at 17.365 (38.2%fib), any close above will push the pair towards 17.512 (Higher BB).
• Strong support is seen at 17.271 (SMA 20) and break below could take the pair towards 17.084 (23.6%fib).
Recommendation: Good to buy around 17.300 with stop loss of 17.100 and target price of 17.500
