USD/RUB stays near session tops around 59.40

The Russian currency has surrendered initial gains vs. its American peer on Wednesday, sending USD/RUB to test the upper end of the range near 59.40.

USD/RUB stronger on oil, USD recovery

After testing lows near the 59.00 handle, sport sparked a correction higher to the current 59.30/40 band backed by a recovery in the greenback after the earlier pullback.

Collaborating with RUB selling, the barrel of Brent crude is down around 1% just below the $55.00 mark, following the American benchmark ahead of the EIA’s weekly report on crude stockpiles.

Absent releases in the US docket, mixed results from the Russian calendar saw Producer Prices up 0.6% inter-month in December, Retail Sales contracting more than expected at an annualized 5.9% and the jobless rate down to 5.3% from 5.4%.

USD/RUB levels to watch

At the moment the pair is up 0.07% at 59.29 facing the next hurdle at 59.75 (high Jan.23) followed by 59.88 (20-day sma) and then 60.24 (high Jan.19). On the other hand, a break below 58.97 (2017low Jan.17) would aim for 58.57 (low Jul.29 2015) and finally 56.20 (low Jul.10 2015).