AUD/USD and USD/JPY steady as China PMI hits 51.5 and Japan-US talks resume

China's RatingDog General Manufacturing PMI climbed to 51.5 in August from 50.9 in July, comfortably in expansion territory and reinforcing the improvement already signalled by the official NBS survey. The stronger factory data provided a supportive backdrop for the China-sensitive Australian and New Zealand dollars, with AUD/USD holding firm at the start of the new month as commodity demand expectations improved. Attention simultaneously shifted to renewed currency discussions between Japanese and US officials, a theme that historically injects two-way risk into USD/JPY as markets weigh the prospect of verbal or actual intervention against a still-wide yield differential. Broader risk appetite was constructive, with regional equities firmer and the dollar index consolidating recent ranges. For traders, the combination of resilient Chinese manufacturing and unresolved Japan-US currency dialogue argues for measured AUD upside against the greenback, while USD/JPY faces headline risk in both directions. Sustained Chinese expansion would also underpin AUD/JPY, though yen sensitivity to policy commentary keeps that cross volatile.