USD/RUB extends the breach of 64.00

The greenback continues to lose ground vs. its peers on Thursday, now sending USD/RUB to the 63.60 area, just above session lows.

USD/RUB lower on USD selling, Brent recovery

Spot has resumed its bearish trend today, quickly leaving behind yesterday’s gains and briefly testing fresh 4-week lows in the 63.45/40 band following the persistent selling bias around the dollar, which has been intensified after the recent dovish tone from the FOMC minutes.

Adding to RUB strength, the barrel of Brent crude has managed to rebound from daily lows and is now navigating sub-$50.00 levels.

Data wise, US Initial Claims and the Philly Fed manufacturing index are due later followed by speeches by FOMC’s Dudley and Williams. In Russia, the CBR will publish its weekly report on FX reserves.

USD/RUB levels to watch

At the moment the pair is losing 0.21% at 63.69 and a break below 62.75 (2016 low Jul.14) would open the door for a test of 62.04 (low Nov.4 2015) and finally 60.70 (low Oct.9 2015). On the upside, the next up barrier aligns at 64.72 (55-day sma) ahead of 65.23 (20-day sma) and then 67.17 (high Jul.29).