USD/RUB sinks to 61.00, fresh 2016 lows

The Russian currency is up more than 2% vs. its American peer at the beginning of the week, dragging USD/RUB to fresh lows in the 61.00 neighbourhood.

USD/RUB drops on Brent gains

RUB is trading in fresh 2016 tops vs. the greenback around the 61.00 handle, levels last seen in October 2015 in response to a strong rebound in crude oil prices following the non-OPEC deal over the weekend in Vienna.

In fact, non-OPEC producers agreed to cut the oil output by nearly 560K bpd starting in January, adding to the already deal clinched by OPEC countries at the meeting in late November, all in order to stabilize the oil market and curb the persistent supply glut.

Data wise today, Russian trade surplus came at RUB6.60 billion in October, missing estimates and down from September’s RUB7.38 billion. The next big event for the pair will be the FOMC meeting on Wednesday, with consensus pointing to a 25 bp rate hike.

USD/RUB levels to watch

At the moment the pair is retreating 2.03% at 61.22 facing the next support at 60.97 (2016 low Dec.12) ahead of 60.84 (low Oct.9 2015) and then 58.57 (low Jul.29 2015). On the other hand, a break above 62.49 (high Dec.12) would expose 63.46 (55-day sma) and finally 63.99 (20-day sma).