G’day, it’s Karen in Sydney. Here’s everything you need to know this morning… 

Today’s must-reads:
• The RBA held its key rate 
• Alcoa closing its Kwinana refinery 
• Home prices post strong gain 

What's happening now

Australia’s central bank left its key interest rate unchanged at 3.6% after three cuts this year. But traders pared bets on a near-term easing as the central bank warned that third-quarter inflation may come in stronger than expected and signaled patience on further interest rate cuts.

Top US aluminum producer Alcoa will permanently shutter its Kwinana alumina refinery in Western Australia, citing negative market conditions and falling ore grades from nearby mines. The decision follows a move last year to curb production.  

Home prices posted their strongest monthly gain in nearly two years in Australia. Going forward, an expanded incentive for first-home buyers is predicted to fuel buyer demand — at a time of already tight supply and declining borrowing costs.

The country’s corporate watchdog warned pension funds to strengthen disclosure around private assets and their valuations. Elsewhere in the multi-trillion-dollar industry, Aware Super bought into a $1.3 billion US warehouse deal alongside Goodman Group. 

 

Australia is marking a new chapter in its space ambitions with the launch of the Australasian Space Innovation Institute. ASII CEO Andy Koronios says Australia is not far behind other developed nations, but it can do better. He discusses the institute's potential impact across agriculture, defense, disaster resilience, and beyond on Bloomberg TV's Australia Ahead.

And in New Zealand, the government offers to support the three power companies in which it has a majority shareholding if they need to raise capital for new electricity generation — even if it’s not renewable.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson, says happened while we were sleeping…

US stocks continued edging cautiously higher with the US government shutdown due to kick in at 2pm Sydney time. Overnight data was mixed with US consumer confidence soft last month. A dollar gauge fell for a third day helping Kiwi and Aussie higher. The latter was also fueled by RBA commentary which spoke of inflation concerns, dampening the case for interest rate cuts. Minor data today shouldn’t move FX or rates. ASX futures indicate a subdued opening for local equities.

Stateside, Donald Trump said “a lot of good” could stem from the looming government shutdown, threatening to oust federal workers and cut Democrat-favored programs if Congress doesn’t meet a funding deadline. The deadlock over spending threatens to paralyze numerous US government operations for the first time in years. 

China’s state-run iron ore buyer told major steelmakers and traders to temporarily stop purchases of all new BHP cargoes. The move deepens a pricing dispute that risks upending one of the mining giant’s most important trading partnerships.

Gold miners raised their highest-ever quarterly proceeds from share sales, as a prolonged rally in bullion prices draws investors seeking extra profit by betting on the companies that produce the metal. 
 

What to watch

• Australia to sell A$1.2 billion 3.5% 2034 bonds, 11 a.m. Sydney

One more thing...

Amazon is overhauling its devices to take on  Apple in the era of artificial intelligence. The company unveiled a suite of new products at an event in New York this week and aims to build devices that people want to show off in their homes and use, at every price tag. While most of the new devices — including updated smart speakers, e-book readers, home security tools and TV accessories — carry higher prices, more affordable products are equally key. 

The Blink Mini 2k+ camera displayed during Amazon's product event in New York.  Photographer: Michael Nagle/Bloomberg