DOLLAR-THB : USD/THB advanced in a lockstep with.....>

DOLLAR-THB : USD/THB advanced in a lockstep with other USD/Asia crosses as

surging coronavirus count in South Korea & reports of two fatalities among the

passengers of the Diamond Princess flicked the risk switch off. Sentiment failed

to find support in China as hopes for more aggressive policy measures proved a

little exaggerated; the PBoC delivered just the expected amount of easing in its

LPR fixings. A moderation in China's Covid-19 case count was obscured by yet

another change to underlying methodology, raising concerns over transparency.

- In the local news, Thailand's FinMin said that the gov't is ready to invest

the delayed FY2020 budget when it receives royal assent and becomes law. The

gov't plans to disbursed THB400bn in Q2 & THB240bn in Q3. Measures are planned

to help the virus-hit tourism industry, a vital branch of Thailand's economy.

- USD/THB rallied to a new eight-month high and now trades +20 pips at THB31.38.

The next key step for bulls would be a move above the 76.4% retracement of the

Apr 25 - Dec 30 slide at THB31.60 & through the May 31 low of THB31.62, which

would fill the gap from that day. Bears eye the Feb 7 high/61.8% Fibo level at

THB31.30.29 as a break here would open a trio of recent lows at THB31.12.