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50-DMA Under Attack, Thailand's CPI & China CZS Talk Under Microscope

THB

Spot USD/THB trades -0.168 at THB37.398 at typing, catching up with Friday's greenback sell-off. Chatter surrounding China's CZS continues to draw attention at the start to the new week, as any loosening of border controls could boost the recovery of Thailand's tourism industry.

  • Bears look for a clean break of the 50-DMA at THB37.345, which would open up Oct 6 low of THB37.125. Bulls set their sights on Oct 20 high of THB38.465.
  • Equity inflows continued last Friday, with foreign investors snapping up a net $22.29mn in Thai stocks. The SET index showed above its 200-DMA but failed to consolidate there and remained below the moving average.
  • The latest batch of Thailand's CPI data will hit the wires later today, with headline inflation expected to have eased to +6.00% Y/Y in October from +6.41% prior. Core CPI inflation may have quickened to +3.20% from +3.12%.
  • Later this week, Thailand's consumer confidence data will be out on Thursday.

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