USD/RUB bounces off lows around 64.00

After a brief test of the vicinity of the 64.00 handle, USD/RUB has now regained traction and looks to recover the 65.00 neighboourhood.

USD/RUB weaker post-CBR

RUB picked up pace despite the Russian central bank (CBR) cut the benchmark rate by 25 bp at its meeting today, matching prior surveys.

The CBR justified the decision in the more stable outlook for domestic inflation, falling inflation expectations and prospects of growth recovery in the economy. It also sees the economy hitting the 4% inflation target in late 2017.

In the meantime, decreasing oil prices have helped spot to bounce of YTD lows in the 63.40 area traded yesterday.

USD/RUB levels to watch

At the moment the pair is up 0.20% at 64.46 facing the next resistance at 65.70 (20-day sma) ahead of 66.31 (55-day sma) and finally 67.67 (high Jun.2). On the flip side, a breach of 63.42 (2016 low Jun.9) would open the door to 64.00 (2016 low Apr.29) and then 62.70 (monthly low Oct.9 2015).