USD/RUB testing highs near 57.70

The Russian currency is losing momentum vs. its American peer at the beginning of the week, with USD/RUB moving higher to the 57.70 region, or daily highs.

USD/RUB attention to oil

RUB is trading on the defensive on Monday following the now softer tone from crude oil prices, as the barrel of European reference Brent crude has retreated from daily highs near the $56.00 mark and is now hovering over the mid-$55.00s.

Earlier, spot found decent support in the boundaries of the 10-day sma near 57.50, although it maintains the narrow trading range for the time being and advancing for the second straight session.

In addition, RUB is deriving extra downside pressure after the CBR cut the refi rate by 50 bp at last Friday’s meeting, matching initial estimates. It is worth mentioning that the Russian central bank left the door open for extra rate cuts in the next months.

Data wise, Russian producer prices are next on tap, while the NAHB index and TIC flows are due in the US docket.

USD/RUB levels to watch

At the moment the pair is up 0.08% at 57.68 and a break out of 57.97 (high Sep.13) would aim for 58.05 (21-day sma) and finally 58.68 (200-day sma). On the other hand, the next support is located at 57.48 (10-day sma) followed by 57.04 (low Sep.11) and then 56.79 (low Sep.7).