USD/THB Breaks 34.00 Support, March CPI On Tap Today

USD/THB has opened sub 34.00, last close to 33.95. The 34.00 figure level has been a support point since mid March. The baht is now back to highs from mid-February and around 0.75% stronger versus yesterday's closing levels. 33.75 could be eyed on the downside, while beyond that is mid-February lows around 33.40. Note on the topside the 20 and 50-day EMAs are in the 34.30/35 region.

• Today's strong open reflects catch up with Tuesday USD weakness during NY trade. Still, the baht is generally keeping pace with the softer trend and outperforming North East Asia FX.
• Offshore net equity flows have started off April more positive compared to March trends, +38.5mn in inflows at the start of the week. Still, the SET has moved away from a test of the 200-day MA for now (last 1594, (1617.5 for the 200-day). Bond inflows are also negative in the first part of the month.
• Tourism hopes no doubt continue to be a key feature of the THB outlook.
• Coming up later is the March CPI print, the market looks for 0.14% m/m (-0.12% prior), with y/y projected at 3.25% (3.79% prior), while core is forecast to remain a benign 1.80% (1.93% prior). This data will be eyed in light of the recent +25bps hawkish BoT hike.
• The Commerce, Industry and Banking Joint Standing Committee will also hold its monthly meeting to discuss the economic outlook.