Plug pulled on Novonix

The ASX 200 dropped 0.9% to 8,814, its lowest close in nearly six weeks, after the RBA kept rates on hold at 3.6%. It was the fifth loss in six sessions as traders digested the RBA’s cautious tone and signs rate cuts may be off the table for a bit longer.

Utilities and miners dragged the index lower – Origin and AGL both fell, and Rio Tinto, Fortescue and BHP all slid more than 2% as iron ore prices weakened. 

Why the RBA kept rates on hold

The RBA left rates steady at 3.60% today, with the decision unanimously backed by the board. Governor Michele Bullock made it clear the fight against inflation isn’t over. She said there may be “more inflationary pressure than expected” and that an inflation rate “just below 3% is not good enough” for the board.

The decision reflected mixed economic signals – while spending has cooled and unemployment remains low, the RBA sees enough heat in the economy to stay cautious. Bullock described the cash rate as being in the “right spot” for now but said the bank is ready to respond if risks tilt either way.

Novonix’s deal short-circuits

The result: Novonix sank 10.6% after carmaker Stellantis abruptly pulled the plug on a six-year supply agreement. The deal was meant to deliver up to 115,000 tonnes of synthetic graphite, a key material for EV batteries, but broke down after disagreements over technical specs and production timelines.

Why it matters: The collapse is a major setback for Novonix which has been banking on the partnership to anchor its new U.S. production strategy. The company is now leaning on existing customers like Panasonic and PowerCo while pushing ahead with its Tennessee expansion project, which will lift graphite output to more than 50,000 tonnes a year.

What’s next: Novonix says it’s still on track to start mass production next year, but investors will be watching to see if it can land another big-name buyer to fill the Stellantis-sized gap.

City Chic’s stylish comeback

The result: City Chic Collective rose 8.8% after the retailer posted a 2.6% lift in total sales for FY2026 (so far). The turnaround was driven by a 10% jump in ANZ revenue, offsetting weaker U.S. sales. CEO Phil Ryan said the group’s new focus on higher quality, full price products is paying off while tighter cost control is keeping the business profitable.

Why it matters: After years of restructuring City Chic is showing signs of real recovery. The company has $9.5 million in cash, $5 million undrawn on debt and cleaner inventory levels heading into the crucial holiday season. Margins are holding stead, and management says trading through October stayed strong.

What’s next: With new summer stock now in stores and key sales events like Black Friday approaching, the next two months will show if City Chic’s turnaround has real staying power.