President Trump arrived in China to meet President Xi, in a summit that looks set to dominate markets and which has the potential to change the world, including the global economy. This is the first official visit to China by an American President in 10 years. Trump has taken major business leaders with him, including Elon Musk, in what promises to be historic. This may have Geo-Political outcomes, in terms of wars, in both the Middle East and Europe. Trade and cooperation will be at the heart of negotiations. Inflation jumped in the US, in the form of both the PPI and CPI, which is understandable considering the energy crises. The US Dollar was steady, with the EUR trading around 1.1700, while the GBP held 1.3500 amongst the political turmoil in the UK.The reserve was steady, allowing the NZD to stabilise just below 0.5950, while the AUD bounced back above 0.7250. The AUD has benefited the RBA’s rate rises and the attractive interest rate differentials. The TRUMP/XI summit will dominate markets for the remainder of the week.
