The South African rand was little changed in early trade on Wednesday ahead of an expected US Federal Reserve interest rate cut and domestic consumer price index and retail sales numbers.

At 0701 GMT, the rand traded at 17.34 against the dollar, up very slightly from Tuesday's close.

Markets are certain the Fed will cut rates when it makes its policy announcement on Wednesday, and bets are on a 25-basis-point cut.

"Recent economic indicators, including a softening labour market and inflation showing limited tariff pass-through, strengthen the case for this move," said ETM Analytics in a research note.

"Investors will particularly be focused on the Fed's forward guidance, with markets pricing in up to 100 basis points of cuts over the next year."

Like other risk-sensitive currencies, the rand often takes cues from global drivers like US monetary policy in addition to domestic data points.

Local investors will look to CPI data for August at 0800 GMT with analysts polled by Reuters expecting headline inflation to edge up to 3.6% from 3.5% in July.

Statistics South Africa will also release July retail sales figures at 1100 GMT, which will offer further clues on the health of Africa's most industrialised economy.

The rand is expected to continue trading in a tight range as domestically focused traders await the South African Reserve Bank's rate decisions on Thursday.

South Africa's benchmark 2035 government bond was also flat in early deals, as the yield rose half a basis point to 9.24%.