Attempting To Consolidate Above 36.00, Portfolio Outflows Continue

USD/THB sits near 36.06 in early Wednesday dealing, slightly lower from closing levels yesterday. The pair is consolidating post the recent break above this figure level. Recent YTD highs in mid Feb come in near 36.20, which will be an upside focus point. The 20-day EMA sits back near 35.80 on the downside.

• Baht comfortably remains the worst EM Asia FX performer YTD, down 5.3% at this stage (KRW is the next worst, -3.7%).
• We have been highlighting the negative portfolio flow backdrop from offshore investors. Yesterday saw $521 million of net selling occurring in terms of local equities, the largest outflow on record and almost five times the second-largest outflow.
• There didn't appear to be a fresh catalyst for this, but general SET underperformance and concerns around the economic outlook have likely kept offshore investors away so far this year. We also saw further selling of local bonds, -$114mn.
• There is little in the way on the domestic data calendar until next week when customs trade data is out. The local parliament will begin a 3-day session to debate a budget bill for the current fiscal year (ending Sep) per BBG. Yesterday it was announced the committee looking after the digital wallet scheme will meet in 2 weeks time.