USD/RUB flirting with highs near 57.50

The Russian currency is now losing the grip vs. its American neighbour on Tuesday, with USD/RUB testing fresh daily highs in the mid-57.00s.

USD/RUB up on Brent drop

RUB reverted the initial gains towards the 57.00 mark following a persistent weakness around crude oil prices. The barrel of Brent crude is now adding to yesterday’s pullback, navigating daily lows near $51.20 ahead of the API’s weekly report on US crude stockpiles.

Rumours around the probable extension of the OPEC/non-OPEC output cut deal have been driving traders’ sentiment as of late, while prospects of rising US production continue to offset the potential effects on prices from the OPEC agreement.

In the meantime, the pair is up for the second session in a row after finding quite decent support around the 57.00 handle, as the softer tone from Brent has eclipsed the broad-based selling mood around the buck.

Data wise in the US, Kansas City Fed E.George (2019 voter, hawkish) and Cleveland Fed L.Mester (2018 voter, hawkish) are due to speak later ahead of the API report on US stockpiles. In Russia, Retail Sales and the jobless rate are expected tomorrow.

USD/RUB levels to watch

At the moment the pair is up 0.33% at 57.48 facing the next hurdle at 58.03 (high Mar.17) followed by 58.22 (20-day sma) and finally 58.97 (55-day sma). On the other hand, a break below 57.00 (low Mar.21) would aim for 56.57 (2017 low Feb.15) and then 56.20 (low Jul.10 2015).