Local Data Signals Come Under Scrutiny

Spot USD/THB trades +0.058 at THB35.410 after Thailand reported wider than expected current account deficit, while the latest S&P Global M'fing PMI showed that expansion decelerated.

• From a technical standpoint, the next bullish target is provided by Jun 24 cycle high of THB35.573. Above there opens Jan 9, 2017 high of THB35.799. Bears need a sell-off past Jun 29 low of THB34.960 to turn near-term technical focus to the downside.
• The BoT said that domestic economy continued to rebound in May, which was reflected in economic data, despite accelerating inflation. Private consumption and investment were rising as economic activity gathered more steam.
• Thailand's BoP current account deficit widened to $3.716bn in May from $3.057bn prior, while analysts expected a $3.000bn shortfall. It was the biggest monthly deficit since 2013 due to seasonal factors, as overseas companies repatriated dividends and profits from local subsidiaries.
• Expansion in Thailand's manufacturing sector slowed in June, the latest S&P Global PMI survey showed. Headline index fell to 50.7 from 51.9 recorded in May, as "weakening demand conditions is a cause for concern," but "overall sentiment among the Thai manufacturing sector remained positive."
• Remaining data highlights today include customs trade data and BoT Business Sentiment Index.
• Elsewhere, the Commerce Ministry will hold a briefing on relief measures to address rising prices.