Baht Firms On Thai Current Account Balance Surplus, Stronger Equity Inflows

Spot USD/THB last deals -0.090 at THB37.970. While broad-based greenback weakness this morning provides some reprieve to the Asia EM currency basket, the baht outperforms in this space. From a regional perspective, bears look for losses towards Oct 27 low of THB37.632, followed by the 50-DMA/Oct 6 low at THB37.216/37.125. Bulls look for a move towards a recent cyclical high at THB38.465.

• Recovery in foreign demand for Thai equities continued on Monday, with offshore players buying a net $109.41mn in local stocks, the largest inflow since late August. The SET index advanced towards its 50-DMA but failed to hold above that moving average and pared gains.
• Thailand's BoP current account balance unexpectedly flipped into a surplus in September, according to data released Monday. BoT Asst Gov Chayawadee said current account balance is expected to improve towards the year-end in line with rising tourist arrivals.
• Expansion in Thailand's manufacturing sector slowed, the latest S&P Global PMI survey showed. Headline index fell to 51.6 last month from 55.7 prior, with deterioration in demand cited as the main negative factor. The survey revealed that "the worst is yet to be over" on the inflation front.
• PM Prayuth chairs weekly Cabinet meeting, while the BoT will publish its Business Sentiment Index later today.