Investors still pricing in a low inflationary environment UNLESS trade war between US-China eases. G-20 Summit key!

1. Inflation Expectations still muted but five wave decline nearing completion. China already introduced ‘power’ stimulus but US-China trade war still the major catalyst in the ‘Reflation’ trade.

2. Commodities and Commodity FX highly dependant on inflation expectations. Unless inflation expectations stabilize/rise then expect more pressure on the Aussie, Kiwi and Looney.