The Week in Two Words: Fear & Opportunity

Author

FX Rocket Profits
September 03, 2025

In partnership with

Risk-Off Rallies, U.S. Manufacturing Slump & Aussie GDP Surprise

Markets leaned heavily into safe-haven assets as political uncertainty, rising global bond yields, and trade tensions kept risk appetite in check. Gold surged to fresh record highs above $3,530, while the dollar gained against most majors on safe-haven demand.

The latest U.S. ISM Manufacturing PMI showed the sector contracting for a sixth straight month at 48.7, though new orders returned to growth for the first time since January — a mixed signal that hints at stabilizing demand but persistent employment weakness.

Meanwhile, Australia’s Q2 GDP beat expectations at 0.6% q/q, the fastest annual growth since late 2023. Household consumption and a mining sector rebound drove the upside surprise, lifting the Aussie across the board. With U.S. jobs data looming, traders are balancing macro caution with selective optimism.

⚡Daily Broad Market Recap – September 2, 2025

  • Risk-off flows dominated as gold hit new record highs and Bitcoin rebounded above $111K.

  • Rising U.K. gilt yields and political uncertainty in Japan and the U.S. kept safe-haven demand elevated.

  • The dollar closed higher across the board, strongest against GBP and JPY.

🔥U.S. ISM Manufacturing PMI – August 2025

  • PMI rose from 48.0 to 48.7, still in contraction for the sixth month.

  • New orders expanded for the first time since January, but production and employment remained weak.

  • Prices surged on tariff-related cost pressures, especially in steel and aluminum.

📊 AUD Popped Higher on Stronger Q2 GDP

  • GDP grew 0.6% q/q and 1.8% y/y, beating forecasts and marking the fastest annual pace since Sept 2023.

  • Household spending and mining output drove growth, though savings rates fell to multi-year lows.

  • AUD gained broadly, strongest against JPY and CHF.

This issue blends macro caution with regional resilience. From gold’s record run and the U.S. manufacturing slump to Australia’s growth surprise, the market narrative is one of divergence — and opportunity. Whether you’re trading safe-haven flows or riding AUD strength, the setups are as much about timing as they are about direction.

Happy Trading!

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