USD/RUB deflates from highs, around 57.20 ahead of FOMC

After reaching fresh highs beyond 57.30 in early trade, USD/RUB has met some sellers and is now returning to the 57.25/20 band.

USD/RUB focus on oil, FOMC

RUB met increasing selling pressure in response to the recent sharp sell off in crude oil prices, with the barrel of Brent crude dropping as low as the vicinity of the $50.00 mark on Tuesday, recording fresh multi-week lows at the same time.

In addition, the renewed bid tone around the buck is allowing spot to extend the upside for the second consecutive session so far, challenging the area of 2-month tops beyond 57.00 the figure.

Later in the session, the buck will stay in the limelight as the ISM Non-manufacturing is due ahead of the key FOMC meeting. Recall that market consensus expects the Fed to stay put, while traders keep seeing the June meeting as a potential candidate for another rate hike.

USD/RUB levels to watch

At the moment the pair is up 0.43% at 57.25 and a breakout of 57.55 (high Apr.10) would aim for 58.19 (high Mar.22) and then 58.62 (100-day sma). On the other hand, the next support lines up at 56.63 (low May 1) followed by 56.60 (20-day sma) and finally 55.72 (2017 low Apr.24).