There is a lot of focus on the visit and understandably so. China has shown last year that it will give into significant outside pressure. It wants to do as little as possible and escape a protectionist fall out.

Any possible move out of Treasuries by the Chinese will lead to a weaker dollar.

The honeymoon period is now really over. The world is really starting to pressure China. There will be appreciation pressure on Asian currencies.

Any possible move out of Treasuries by the Chinese will lead to a weaker dollar. They're saying they're trying to diversify out of dollars and limit any fresh holdings of dollars. That's going to be bad for the U.S. currency over the long term.

We have to focus now on the next big problem which will be heating.

Margins in China are razor thin and they may not be able to withstand much yuan appreciation. The export sector is vulnerable and the government is going to be very cautious in what it does and that's the message.