Trade Deficit Weighs On THB, But Still 0.55% Firmer For The Session

USD/THB is a touch above session lows. Last near 35.29, against an earlier lows just under 35.24. We are still near 0.55% stronger in baht terms for the session, as we see somewhat of a catch up to recent USD weakness, plus the break higher in gold prices today.

• Last week's highs were just above 35.51. Note we are very close to the 200-day EMA at current levels, while earlier Nov lows came in near 35.00.
• Oct customs trade figures have come in slightly weaker than expected, at least from THB's standpoint. Exports were close to forecast at 8.0% y/y (9.0% expected), but import bill rebounded more than forecast (+10.2% y/y, versus 6.05% forecast).
• This left the trade deficit at -$832mn, against a $530mn surplus forecast and $2090mn prior. This helped take THB off its highs.
• The break higher in gold, if sustained, could aid gold shipments in coming months.
• Looking ahead we have the BoT decision this Wednesday. No change is expected (current policy rate is 2.50%).