USD/RUB advances to highs near 65.30, oil, data eyed

The greenback is now gathering further upside momentum, sending USD/RUB to test fresh daily tops in the vicinity of 65.30.

USD/RUB attention to data, oil

Spot met extra upside pressure on Tuesday following a pick up in the demand for the US dollar, while the substantial drop in crude oil prices continue to weigh on RUB.

In fact, RUB weakness has intensified today after the barrel of Brent crude is shedding more than 2% to the $48.00 neighbourhood at the time of writing, as hopes on a potential deal to limit the oil output at the OPEC meeting tomorrow have drastically diminished.

The pair will remain under pressure ahead in the session in light of key releases in the US economy: another revision of Q3 GDP figures, CB’s Consumer Confidence, the S&P Case-Shiller index, Q3 PCE and speeches by NY Fed W.Dudley (permanent voter, neutral) and J.Powell (permanent voter, neutral).

In Russia, Markit’s Manufacturing PMI for the month of November is due on Thursday followed by the CBR’s holdings of FX Reserves.

On the positioning front, RUB speculative net longs have been trimmed to the lowest level since early October during the week ended on November 22, as shown by the latest CFTC report.

USD/RUB levels to watch

At the moment the pair is advancing 0.55% at 65.19 facing the next up barrier at 65.30 (high Nov.18) followed by 65.87 (200-day sma) and finally 66.48 (high Nov.14). On the other hand, a breakdown of 64.45 (20-day sma) would aim for 64.16 (100-day sma) and then 63.49 (low Nov.22).