USD/CNH, USD/JPY eye thin liquidity as China markets close Monday

Asian forex markets face reduced liquidity on Monday, February 16, with Chinese mainland markets closed and Hong Kong and Singapore operating half-day sessions. USD/CNH traders should note the absence of onshore price discovery, which typically leads to wider spreads and muted volatility in yuan-related pairs. China's housing data, already released last week, showed prices declining 3.1% year-over-year and 0.4% month-over-month in January, reinforcing the ongoing property sector downturn that continues to weigh on yuan sentiment. Meanwhile, USD/JPY will be in focus as Japanese GDP growth data is due for release, potentially driving yen volatility during the Asian session. The persistent weakness in China's real estate market adds to concerns about broader economic slowdown, which has historically supported safe-haven flows into the US dollar and Japanese yen. Traders should exercise caution given the reduced liquidity environment, as thin order books can amplify sudden price moves. Key levels to watch include any breakout moves in USD/JPY around the GDP release, while USD/CNH may remain range-bound until Chinese markets reopen.