THB: USD/THB Stabilizes After Fresh Multi Year Lows, RSI (14) Still Oversold
USD/THB sits near 31.75 in latest dealings, up around 0.25% versus end Tuesday levels. Fresh multi year lows from yesterday were at 31.61. This is in line with a stronger USD from Tuesday US trade, although recent THB gains have outpaced dollar weakness. Note the 20-day EMA is back around 32.23, while the 50-day is at 32.42, so still some distance away from resistance points.
- The RSI (14) has been in oversold territory for the pair in recent sessions (last reading at 29.43, so still just under 30.00). This coupled, with some USD stability, and BoT vows to curb excessive volatility in USD/THB, may have contributed to today's modest move higher in the pair.
- Gold prices have also stabilized, although remain in a strong uptrend. Market focus is shifting to the upcoming US inflation prints.
- Locally, focus will be on efforts to decouple THB from gold prices, along with any other measures to curb baht outperformance. Offshore inflows have been better since the new PM took office although Sep to date equity inflows are still negative, while bond inflows are marginally positive.
- On the data front, tomorrow we get August consumer confidence then FX reserves to Sep 5 print on Friday. The FX reserves print pre-dates the recent break lwoer in USD/THB, but will still be a focus point going forward.
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