Baht Goes Offered After Thailand's Current Account Balance Flips Into Deficit

The baht has sold off and now underperforms all its regional peers after data showed that Thailand's BoP current account balance unexpectedly flipped into a deficit last month.

• Spot USD/THB last trades +0.2218 at THB35.323, with the reaction move taking it above the 100-DMA which has been intact since mid-November. The RSI has moved into overbought territory and sits at 76.3 at typing.
• Should bulls manage to force their way through the 200-DMA at THB35.506, they could target Nov 22 high of THB36.280. Conversely, a dip through the 50-DMA at THB33.819 is needed to give bears some reprieve.
• The rate's upswing today builds on its advance from earlier this month, which was facilitated by a recovery in the greenback, with participants reassessing Fed rate-hike path.
• The current account shortfall was $2.002bn in January, representing the largest gap since August. The median forecast was a surplus of $1.200bn, which would be slightly wider than December's $1.102bn.
• The BoT attributed the swing to a current account deficit to a rising trade gap. It said that Thailand's trade shortfall stood at $2.670bn last month.