PBOC Stand Pat On LPRs, Decline In New Home Prices Slows

Spot USD/CNH oscillated within a very tight range before losing some altitude, as participants weighed improvement in the broader risk backdrop against the PBOC's decision to keep its Loan Prime Rates unchanged this month.

• China Securities Journal ran a front-page report noting that the PBOC should make use of further monetary measures, such a RRR or interest rate cuts, to support domestic demand and market confidence.
• China's new home prices fell 0.04% M/M in January, a fifth straight month of losses. Still, the decline slowed from a 0.28% loss recorded in December.
• Foreign Min Wang threw in his two cents on the Russia-Ukraine standoff and told the Munich Security Conference that Minsk accords provide a way out of the crisis. He defended Ukraine's right to sovereignty & territorial integrity, while urging NATO to consider Russia's concerns.
• Spot USD/CNH trades -33 pips at CNH6.3218 at typing, with bears looking to a sell-off past Friday's cycle low of CNH6.3182. A clean break here would shift focus to the CNH6.3000 mark. On the flip side, bulls would welcome a bounce above Feb 8 high of CNH6.3763.