USD/RUB off highs, back near 58.00

The Russian currency is trading on the defensive on Tuesday, motivating USD/RUB to test highs near 58.30 albeit losing some upside momentum afterwards.

USD/RUB focus on data, Trump

The pair keeps gravitating within familiar ranges so far this week, although further upside seems to have found quite a tough barrier in the mid-58.00s for the time being.

Adding to RUB selling, the barrel of Brent crude has faded the initial advance to the $56.60/65 band and has now receded to sub-$56.00 levels.

Next on tap in the Russian calendar will be tomorrow’s manufacturing PMI measured by Markit ahead of the weekly report on FX reserves held by the CBRF on Thursday.

Recent news from Russia saw agency Moody’s upgrading the country’s outlook from negative to stable, backed by the government’s fiscal consolidation strategy in the medium term.

In the US data space, advanced Q4 GDP figures have come in at 1.9%, while the S&P/Case-Shiller Index, Chicago PMI and CB’s Consumer Confidence have all surpassed expectations.

Later in the session, Philly Fed P.Harker (voter, hawkish) and San Francisco Fed J.Williams (2018 voter, neutral) are also due to speak ahead of the SOTU speech by President D.Trump.

USD/RUB levels to watch

At the moment the pair is advancing 0.31% at 58.25 facing the next hurdle at 58.49 (20-day sma) followed by 58.54 (high Feb.24) and finally 59.59 (high Feb.8). On the other hand, a break below 57.59 (low Feb.27) would aim for 57.31 (low Feb.22) and then 56.57 (2017 low Feb.15).