USD/RUB picks up pace around 60.00

The Russian currency is trading in the middle of the daily range vs. its American peer, taking USD/RUB to the 60.00 neighbourhood ahead of Yellen’s testimony.

USD/RUB gains capped at 61.00

After climbing as high as the critical 61.00 mark on Tuesday, spot sparked a correction lower backed by the recovery in crude oil prices.

In fact, RUB derived extra support after the barrel of Brent crude bounced off weekly lows near the $46.00 handle to the current boundaries of the $48.00 mark.

Despite yesterday’s pullback and today’s hesitating price action, the pair seems to remain within a bullish trend after breaking above the consolidative theme seen in late June. Collaborating with the upside, the somewhat dovish CBRF and the recent announcement by FinMin Sulianov that the country will increment its purchases of FX currencies remain a drag for RUB.

In the data space, Russian trade surplus widened to RUB 8.52 billion in May and FX reserves held by the CBRF dropped to $410.9 billion from $412.2 billion in the previous week. In the US, initial claims rose more than expected while producer prices surprised to the upside during last month.

USD/RUB levels to watch

At the moment the pair is up 0.11%% at 60.06 and a surpass of 60.98 (high Jul.11) would expose 61.28 (2017 high Jan.3) and finally 61.63 (high Dec.30 2016). On the downside, the immediate support emerges at 59.66 (low Jul.13) seconded by 59.49 (21-day sma) and then 58.66 (low Jun.27).