The Russian Ruble is trading on the defensive today, lifting USD/RUB to the mid-57.00s despite the softer tone around its American peer.
USD/RUB higher on Brent drop, comments
RUB met downside pressure today following another drop in crude oil prices, with the barrel of Brent crude trading near $51.50 and testing at the same time multi-day lows.
Adding to RUB selling, Russian FinMin Silunov said earlier that the currency is overvalued by 10-12%. Spot is thus advancing for the first time after three consecutive pullbacks, coming down from recent tops in the mid-59.00s although finding some decent support in the 57.00 neighbourhood,.
On the data front, Russian Industrial Production contracted 2.7% on a year to February, coming in short of estimates. Further data saw Producer Prices rising 0.8% inter-month in February and 15.1% on an annualized basis.
Somewhat limiting the downside, the speculative community has increased its net long positions to 3-week tops during the week ended on March 14 according to Friday’s CFTC report.
USD/RUB levels to watch
At the moment the pair is up 0.56% at 57.48 facing the next hurdle at 58.03 (high Mar.17) followed by 58.27 (20-day sma) and finally 59.03 (55-day sma). On the other hand, a break below 57.16 (low Mar.17) would aim for 57.02 (low Feb.16) and then 56.57 (2017 low Feb.15).