Baht On Defensive Ahead Of Local Data Releases, Shrugs Off FinMin's Remarks

The baht sits at the bottom of Asia EM currency table, despite being this month's outperformer. It has shrugged off a round of comments from Thai FinMin Arkhom, with all eyes on today's data dump.

• The official continued to play up optimism on the recovery of domestic tourism industry, which he singled out as a key driver for the economy. Arkhom noted that the government considers extending tax measures on energy prices and will offer diesel price subsidy through the year-end as inflation is seen averaging at +6.0% Y/Y this year. He added that the government still has space to offer some more stimulus but may start paring it back as economic recovery gathers momentum.
• Spot USD/THB trades +0.200 at THB36.550 after printing a four-week high at THB36.590. Familiar technical contours remain in play.
• Thailand's manufacturing production index will be published at the top of the hour. It is expected that it has climbed 8.40% Y/Y last month after a 0.08% contraction in June.
• BoP data will be released later in the day. Current account balance is expected to have stayed in deficit, albeit a tad narrower than the prior month. Bloomberg consensus calls for a -$1.755bn reading versus June's -$1.873bn.