Donald Trump is "surprisingly" good at foreign policy, according to former prime minister Paul Keating, who says the United States was directionless under the previous three administrations.

Mr Keating on Friday said he had not expected Mr Trump to have "such a pragmatic" foreign policy on China and Russia, and he urged the President to continue down the path he was on.

"America has gone on for 24 years without a strategy," Mr Keating told a business conference in Sydney, during which he criticised Barack Obama's timidity and "lack of policy ambition" in office.

Former prime minister Paul Keating Credit:Jim Rice

"Trump has, surprisingly - and I hope he maintains this - put his hand up for the right policy."