Today’s attention is on the Australian GDP data for Q2 and the Chinese private-survey services PMI. We expect the Australian economy to show some improvement from Q1, although not a significant change. The Chinese services PMI, now referred to as the Ratings Dog/S&P Global PMI (previously Caixin/S&P Global PMI), released its August data. The Manufacturing PMI was at 49.4, while the Services PMI met expectations at 50.3.

Manufacturing PMI Data

The S&P Global Manufacturing PMI for China in August was reported at 50.5, surpassing the expected 49.5 and the previous figure of 49.5. Additionally, Reserve Bank of Australia Governor Michele Bullock will give the Shann Memorial Lecture, discussing how technology impacts central banking. This information is part of the daily Asian economic calendar for September 3, 2025, with updates available on the investingLive economic data calendar. This calendar provides GMT times and compares previous figures with consensus expectations. We are closely watching tomorrow’s Australian GDP numbers for clues about market direction. Following a slow 0.1% growth in Q1 2025, any improvement might lower implied volatility for the Australian dollar. If the data aligns with expectations and there are no major surprises, selling options could be a smart move.

Conflicting Signals From China

The mixed signals from China’s August PMI data are creating uncertainty. The official manufacturing PMI fell to 49.4, indicating a contraction, while the private S&P Global survey rose surprisingly to 50.5. Tomorrow’s private services PMI will be crucial; a strong result could boost sentiment for commodities like iron ore, while a weak one could support the narrative of a broader slowdown. This inconsistency in Chinese data complicates how to position ourselves in the coming weeks. We have seen this situation before in late 2024, when conflicting data led to unstable markets for proxy assets like the AUD/USD. For now, traders might want to consider strategies suitable for a range-bound market or use options to manage risk for any directional bets. Later, the speech by RBA Governor Bullock represents a key event risk, even if it seems academic. The RBA has maintained the cash rate at 4.35% for much of the past year, so we’ll be looking for any spontaneous comments about the economy. Surprising remarks could easily sway markets, making this a moment to watch before making longer-term trading decisions. Create your live VT Markets account and start trading now.

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