Release Explanation: This release is the Melbourne Institutes measure of the change in the price of goods and services which are purchased by consumers. The report replicates how the Australian Bureau of Statistics calculates the quarterly CPI and strives to closely correspond with the official government numbers. This report comes out monthly rather than quarterly so that makes it a timelier indicator than the quarterly CPI.

Trade Desk Thoughts: The inflation estimate for Australia, released this evening by TD Securities, increased by 0.7 percent month over month for February. This report shows that inflation pressures have somewhat stabilized as the economy attempts to buffer itself from the global recession which has diminished exports and consumer confidence wanes. It is possible that the recession will eventually filter through to lower inflation but this process may take more time than initially thought.

Forex Technical Reaction: The aussie has slid 50 pips from the start of the new trading week, rejected from the neutral pivot point the pair has yet to find solid support.