Aussie Drops Ahead of RBA Meeting as Retail Sales Contract

The Australian dollar dropped today after retail sales unpleasantly surprised Forex market participants by falling in March. The negative data spurred talks about potential interest rate cut by the Reserve Bank of Australia.
Retail sales shrank 0.4 percent on a seasonally adjusted basis in March after rising 1.3 percent in February. Traders have hoped for an increase by 0.2 percent. The RBA conducts meeting tomorrow. Analysts do not expect the central bank to slash borrowing costs on the meeting, but the bank may do so later.
AUD/USD dropped from 1.0296 to 1.0245 and AUD/JPY edged down from 102.12 to 101.68 as of 11:40 GMT today.

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