USD/THB Comfortably Below 36.00, Feb CPI Out Tomorrow

USD/THB last tracked near 35.80, around 0.40% stronger in baht terms. Earlier we got to 35.75, which wasn't too far off Feb 22 lows. The pair is back under the 20-day EMA, 35.84, while the 50-day sits further south near 35.63. Recent highs rest at 36.13 from late Feb.

• Outside of MYR, the baht has been the strongest performer in the past 5 sessions among the EM Asia currencies, up nearly 0.90%. Still, for 2024 as a whole it is the weakest performer, down 4.6%.
• Growth headwinds have seen equities underperform, while offshore investor sales stand at -$811.2mn YTD. The SET is not too far off YTD lows, last near 1369.
• There are other supports in the cross asset space though, gold prices have hit fresh highs going back to late Dec, which still has some positive correlation to THB trends. Related (to the gold price rise) has the pull back in US yields following recent softer data.
• The local focus will switch to tomorrow's Feb CPI. Onshore debate continues around the need for lower interest rates. Late last week we saw continued BoT push back, with the central bank Governor stating that such a move wouldn't boost growth materially.