USD/RUB drops and tests 2019 lows near 66.00

• RUB gains extra ground and drags spot to fresh yearly lows.
• Brent advance sustains the up move in the Russian currency.
• Russian trade surplus came in at nearly $19 billion in November.

The Russian currency is extending its upbeat tone so far this week and is now forcing USD/RUB to trade in new YTD lows in the vicinity of 66.00 the figure.

USD/RUB up on Brent move

Spot is trading on the defensive for the third consecutive week so far following the rejection from late-December peaks in the 70.00 neighbourhood, leaving behind the 10-day SMA and the 100-day SMA at 66.72 and 66.69, respectively.

RUB is deriving extra support from the up move in crude oil prices, lifting the barrel of European reference Brent crude to levels close to the $62.00 mark, or gaining more than 1% for the day.

In the US data space, US Industrial Production expanded more than expected 0.3% MoM in November, while the preliminary print of the Consumer Sentiment for the current month is due later. Earlier in the session, Russian trade surplus shrunk a tad to $18.98 billion during November.

USD/RUB levels to watch

At the moment the pair is losing 0.12% at 66.30 and a break below 66.16 (2019 low Jan.18) would aim for 67.78 (200-day SMA0 and finally 65.43 (low Nov.22 2018). On the flip side, the initial hurdle aligns at 66.72 (10-day SMA) followed by 67.18 (55-day SMA) and then 69.94 (high Dec.29 2018).