USD/THB Testing Downside 50-day EMA Support

Baht is the best performing Asian currency in Monday trade to date. USD/THB is down around 0.55%, last near 36.03 for spot (earlier lows were at 35.99). Some of this may reflect catch up to USD trends, although broader dollar indices aren't too different from where Thailand markets closed on Friday.

• In terms of technicals, we are very close to the 50-day EMA (36.01), which we traded meaningfully below since August of this year. The 100-day sits further south at 35.58, while the 20-day is at 36.32.
• A decent equity close last week (+1.24% for the SET), which saw a modest +$36.7mn from offshore investors likely helped. Outflows were still evident for the week, but less so compared to other parts of the region.
• Bond inflows were more positive at +$303mn last week, with signs the government is potentially tempering its fiscal support aiding sentiment in this space at the margin.
• Over the weekend, BoT Governor Sethaput Suthiwartnarueput stated the central bank will assess risks from the Middle East but the current stance of policy is appropriate (see this BBG link).
• Tomorrow's data calendar sees September IP, and trade figures out.