Business Conditions Turn Negative 

• The NAB business survey showed weakening, with conditions falling 5 points to -1, the first negative reading in 6 years; confidence is still subdued, dropping from -6 to -8.
• Consumer sentiment also fell 5.2% in September to 84.4, with higher rates and housing market weakness feeding through to households.
• Australian rates remain under upward pressure following hawkish RBA communication, with two speakers yesterday reiterating that elevated inflation is the key policy concern and a further increase appropriate should upside risks materialise. Around 70% is priced for a hike.
• Houthi attacks on Saudi energy infrastructure and US strikes on Iranian targets have reignited inflation concerns, with Brent at US$99/bbl and WTI at US$94/bbl.
• Markets remain focused on US inflation ahead of next week’s Fed meeting, with CPI later this week an important input into the policy outlook and around 60% priced for a hike.