USD/RUB rebounds to 65.50, session tops

The Russian currency is rapidly depreciating vs. its American peer on Wednesday, taking USD/RUB to fresh daily tops in the mid-65.00s.

USD/RUB attention to oil, USD

The pair is reverting yesterday’s sharp pullback to the vicinity of the 64.00 handle following a correction lower in crude oil prices and the continuation of the solid momentum around the greenback.

In fact, the barrel of Brent crude has slipped back well below the $47.00 mark so far today, reverting Tuesday’s bull run to the mid-$47.00s after concerns over the potential deal on an output freeze seem to have re-emerged during the European morning.

In addition, the rally in the greenback appears everything but abated. In terms of the US Dollar Index, the buck is trading in levels last seen in early December 2015 near 100.50, backed by rising expectations of Fed tightening its monetary policy next month and solid results from the US docket.

Later in the US data space, Industrial and Manufacturing Production, Capacity Utilization, the NAHB index and the DoE’s report on crude oil supplies are all due for release. In addition, Philly Fed P.Harker (2017 voter, hawkish) is also due to speak.

In Russia, advanced GDP figures on Monday showed the economy has contracted less than expected at an annualized 0.4% during the third quarter. Today, Industrial Production is seen expanding 0.1% on a year to October.

USD/RUB levels to watch

At the moment the pair is advancing 2.06% at 65.49 facing the next up barrier at 66.48 (high Nov.14) followed by 67.15 (high Jul.27) and finally 67.67 (high Jun.2). On the downside, a break below 64.09 (low Nov.16) would open the door to 63.61 (20-day sma) and then 63.25 (low Nov.11).