Australian inflation missed forecasts, supporting the case for the Reserve Bank to hold the cash rate steady at 3.6 per cent next month.
Australia's monthly headline inflation data for February slowed to 6.8 per cent, against forecasts of 7.2 per cent.
The ABS said the most significant price rises were Housing (+9.9 per cent), Food and non-alcoholic beverages (+8.0 per cent) and Transport (+5.6 per cent).
The Australian dollar dipped 0.2 per cent to US66.94¢ after a softer-than-expected inflation print.
Australian shares reversed earlier losses to be flat after inflation slowed more than expected in February – a result that will be welcomed by the Reserve Bank.
Interbank futures scaled back expectations of an RBA rate increase next week. They had implied an 18 per cent chance of a lift to 3.85 per cent on Tuesday, and were now pricing a 3 per cent chance of a rate increase.