USD/RUB advances to highs near 62.90 ahead of FOMC

The Russian currency is now losing further ground vs. the buck, allowing USD/RUB to climb to session highs around 62.90.

USD/RUB higher on USD, Brent

RUB is now trading on a soft fashion following today’s pullback in crude oil prices, with the barrel of Brent crude shedding more than 1% to levels below the $52.00 mark.

In the meantime, spot is advancing for the second consecutive session so far, managing to prolong the rebound from Monday’s fresh 2016 lows in sub-62.00 levels and propped up almost exclusively by the ongoing USD rally.

In the data space, Russia’s trade surplus has come in below initial estimates at RUB 4.93 billion during August, while US JOLTs Job Openings also missed forecasts at 5.443 million during the same period.

Ahead in the session, FOMC minutes are expected to lean towards the hawkish side. In view of strategists at TD Securities, “the key takeaway will be any discussion on the next step towards policy normalization, which should help to determine the timing of the next rate hike”.

USD/RUB levels to watch

At the moment the pair is up 0.34% at 62.88 and a break above 63.34 (20-day sma) would aim for 64.25 (high Sep.26) and finally 64.38 (55-day sma). On the other hand, the immediate support lines up at 61.85 (2016 low Oct.10) followed by 60.70 (low Oct.9 2015) and then 48.79 (low May 13 2015).