Global currency and equity markets exhibited caution and consolidation on Thursday as investors awaited the outcome of the high-profile summit between US President Donald Trump and Chinese President Xi Jinping in Beijing [1][2][3]. The Swiss Franc (CHF) traded flat against major peers, with USD/CHF hovering around 0.7820, as market participants anticipated Trump's comments following his meeting with Xi [1]. Similarly, the Indian Rupee (INR) remained under pressure, with USD/INR near its all-time high of 95.88, amid persistent foreign fund outflows and elevated oil prices, despite a 1.4% daily drop in WTI crude to $95.50 [3]. The Australian Dollar/Japanese Yen (AUD/JPY) cross strengthened, trading near 114.65, supported by a bullish technical outlook as the summit unfolded [2].
The summit drew significant attention from global business leaders, with Xi Jinping meeting US CEOs such as Elon Musk, Jensen Huang of Nvidia (NVDA.O), and Tim Cook of Apple (AAPL.O) at the Great Hall of the People [2]. Xi expressed optimism about the trade outlook and stated that "China's door would only open wider," suggesting increased opportunities for US companies [2]. Trump, ahead of the meeting, indicated he would urge Xi to "open up" China further to US interests [2].
Geopolitical issues were also in focus, with Xi warning that US-China relations could face conflict if the Taiwan issue is mishandled by Washington [1]. Additionally, the summit agenda reportedly included discussions on the Iran war, artificial intelligence, advanced chips, tariffs, and rare earths [3]. Trump commented on Tuesday that the US does not need external help to resolve the Iran conflict, stating, "We’ll win it one way or the other, peacefully or otherwise" [3]. However, US Secretary of State Marco Rubio suggested that Washington hopes to persuade Beijing to play a more active role in resolving the Iran crisis, given China's status as Iran's largest oil buyer [3].
Market sentiment was further shaped by expectations regarding US Federal Reserve policy. The US Dollar Index (DXY) remained firm near 98.50-98.60, close to its weekly high, as traders scaled back bets on Fed rate cuts following US CPI data showing headline inflation accelerated to 3.8% year-on-year in April, up from 3.3% previously [1][3]. According to the CME FedWatch tool, the probability of at least one Fed rate hike by year-end rose to 32.2%, while the likelihood of a rate cut dropped to just 1% [1][3].
Technical analysis for AUD/JPY indicated a constructive bullish bias, with the pair holding above key moving averages and resistance seen near 115.00 [2]. For USD/INR, continued foreign institutional investor selling and high oil prices weighed on the Rupee, while the strong US Dollar provided additional support [3].
CONCLUSION
Markets remained cautious and largely range-bound as investors awaited concrete outcomes from the Trump-Xi summit in Beijing. Key currencies such as the Swiss Franc, Indian Rupee, and AUD/JPY reflected this uncertainty, with geopolitical and monetary policy developments closely watched. The summit's results, particularly regarding trade, Taiwan, and Iran, are expected to influence market direction in the coming sessions.