ASIA FX: THB Reacts Little To Ex PM Thaksin Being Cleared, USD Firms Elsewhere

In South East Asia markets, the bias has been for a firmer USD, with dollar gains in the 0.20-0.30% region. This fits with the trends seen for the majors, where the dollar is gravitating higher ahead of Powell's Jackson Hole speech later.

• USD/THB is trading with a positive bias in the first part of Friday dealings, like most other parts of the region. The pair was last around 32.66, up 0.15% versus end Thursday levels. This is fresh highs back to early August and through the 50-day EMA resistance point. The 100-day EMA is further north, close to 32.87. Headlines crossed earlier that ex-PM Thaksin has been cleared of a Royal Family insult charge. FX reaction was limited, while onshore equities pushed higher. However, there are other up-coming cases which could still create political instability. Other headlines have crossed from the Deputy FinMin that tax measures to boost consumption before year end are being considered.
• USD/IDR is up around 0.35%, putting the pair into the 16340/45 region, fresh multi week highs. The 1 month NDF is little changed though, so this largely looks like catch up to USD gains from Thursday's session.
• Onshore Philippine markets have returned, with USD/PHP rebounding back above 57.00, but it remains within recent ranges.
• USD/MYR is above 4.2300 in latest dealings, earlier highs were close to 4.2360. Today's CPI underscored the weakness in inflation and for some domestic observers points to a need for further monetary policy action.