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Baht Remains Top Asia EM Performer Amid Continued Equity Inflows

THB

The baht is the best performer in emerging Asia, cementing its position as regional leader this week, with continued equity inflows lending support to the Thai currency.

  • Spot USD/THB last trades -0.140 at THB37.880. From a technical standpoint, initial downside target is at THB37.324, which represents the ascending 50-DMA. Below there opens key support from Oct 6 low of THB37.125. Meanwhile, bulls set their sights on Oct 20 cycle high of THB38.465.
  • The pair's RSI is sending bearish signals. It fell from overbought territory back in September and failed to return above the 70 threshold as the price printed higher highs and then ebbed lower alongside the spot rate, currently being on the verge of confirming a bearish failure swing.
  • Foreign investors were net buyers of $79.67mn in Thai stocks Thursday, extending a renewed streak of daily inflows. The SET index lodged some marginal gains, but fell short of re-testing resistance from its 200-DMA.
  • Thailand's Board of Investment will hold a briefing on new measures today, while BoT Dep Gov Ronadol will speak at a debt reconciliation fair. Elsewhere, the BoT will publish weekly foreign reserves data.
  • Thailand's October CPI data will hit the wires in the coming days. Headline inflation may have slowed to +6.00% Y/Y last month from +6.41% prior, while core inflation is expected to have quickened to +3.20% from +3.12%.

Fig. 1: RSI Shows Bearish Momentum IS Building In USD/THB

Source: MNI - Market News/Bloomberg

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