The Australian Dollar traded at its lowest level in 7-weeks after the release of a government report revealing slow growth in retail sales in April, reducing speculation of an interest rate hike by the Reserve Bank of Australia. Bonds rose, thus prompting traders to bet the RBA would increase its 6.25 percent overnight cash rate. ''The Australian dollar sold off as the market was disappointed by the number,'' said Jonathan Cavanagh, a currency strategist at Westpac Banking Corp. in Sydney. ``This reinforces the market's view that interest rates won't be changing.''

In forex-trading, the Australian Dollar traded at 81.84 U.S. cents in comparison to 82.04 U.S. cents yesterday. In trading against the Japanese Yen, it was worth 99.47 in comparison to a previous trade of 99.67 Yen.