USD/THB Firms, As Onshore Markets Return

USD/THB sits a little higher in the first part of dealing on Monday, as onshore markets return from last Friday's public holiday. The pair was last near 36.25, around 0.20% weaker versus Thursday closing levels (36.18).

• Last week's lows in the pair came in around 36.09, while the 50-day EMA is near 35.90. This level also coincides with late September lows. On the topside, the 20-day EMA is at 36.42.
• The rebound in baht last week (+2.28%), puts it as top Asian FX performer in October to date (+0.47%). Support appeared to come from a rebound in the equity backdrop, with the SET index up from recent lows, although the market has opened weaker today (down over 1%).
• Offshore investors net bought $77mn of local shares last week, the best inflow week since early May. Since the start of September to early October we had seen nearly $1bn in outflows.
• The extent of recent weakness in both equities and FX may have encouraged some dip buyers to emerge, as fundamentally not much has appeared to have changed in the past week.
• The local data calendar is fairly quiet this week. PM Srettha travels to China later today as part of the Belt And Road Forum.