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USD/THB Still Finding Support Ahead Of 34.00


USD/THB has moved higher in line with trends elsewhere in the region. The pair last around 34.25/30, +0.35% firmer for the session so far. Support for the pair is still evident around/ahead of the 34.00 level, which we bottomed out around late last week. The 20 and 50-day EMAs sit slightly higher, in the 34.35/34.40 region.

  • Local equities are trying push higher, but there appears to be some resistance ahead of the 1600 level (last around 1592.50). Offshore investors haven't returned to the local bourse in a major way, with still -$858.8mn in net equity outflows so far in March.
  • Thai related equity analysts feel consumer related stocks may do well, given the potential for more cash to households, but this assumes a smooth transition of power after the May election. The opposition party continues to lead in the polls (see this link).
  • On the data front, Feb customs trade figures are due between now and the end of the month. Tourism arrivals were slightly down in Feb (2.11mln) versus Jan (2.14mln).
  • Most focus will rest on Wednesday's BoT outcome though. The consensus looks for a +25bps hike, but a few forecasters expect no change.

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