The sales of Australian retail goods, like shoes and clothes dropped surprisingly in May. In seven months it is the biggest drop. As per Bureau of statistic in comparison to last month the retail sale fell by 0.6%. a gain of 0.3% were expected by most of the analyst.

On Monday other figures also showed that approvals for new home also dropped again for second month. This data will strengthen the argument as to keep the interest rates on hold.

On Tuesday the Reserve Bank of Australia (RBA) will meet to decide that whether to increase the interest rates from the recent level of 4.75% to higher.

Brian Redican of Macquarie Bank said across the regions and sectors the softness was found, thus little sign of increase in economic impulse is there that the RBA was expecting.

“The consumer clearly doesn’t need any more encouragement from the RBA to stay on the sidelines. It lessens the need for another hike.”

After the release of figure in the early trade the Australian dollar weakened.