Retail sales in Australia fell unexpectedly in March, and households faced the prospect that borrowing costs would rise over a longer period of time. The Australian dollar fell in response. According to data released by the government on Tuesday, retail sales fell 0.4% month-on-month and are estimated to grow by 0.2%. Retail sales were revised down to a 0.2% increase in February. The Australian dollar once fell 0.46%, and policy-sensitive 3-year Australian Treasury yields continued to decline. The money market's forecast for the probability of interest rate hikes in November was lowered to 35% from nearly 60% on Monday. The report contrasts with last week's higher-than-expected inflation data, which prompted traders to change their interest rate cut bets to interest rate hikes this year. Economists insisted on their expectations of easing policies, even though they delayed their expectations for when the Bank of Australia would cut interest rates for the first time until November.