Retail sales and the country's trade surplus exceeded economists' expectations in March, with fresh signals on the economy coming just hours before the next RBA interest rate meeting, where a rate cut hangs in the balance.

Australia recorded a trade surplus of $4.9 billion in March. Last month's trade surplus was also revised higher, to a record $5.1 billion, from a previous reading of $4.8 billion. Economists had been expecting a trade surplus of $4.5 billion, according to Bloomberg.

Retail sales rose a seasonally adjusted 0.3 per cent over the month. Economists were expecting a reading of 0.2 per cent for March, according to estimates compiled by Bloomberg. February retail sales were revised up to 0.9 per cent from 0.8 per cent.

Higher food prices contributed to the March result, according to the Australian Bureau of Statistics, as did sales of clothing, footwear, personal accessory and household goods. By state, Victoria saw the strongest rise in retail sales in March, up 0.7 per cent, while Western Australia was the worst performer with a 0.7 per cent decline.

The Australian dollar picked up a touch after the data, briefly moving back over the US70¢ level before dropping back to US69.98¢.

JPMorgan economist Ben Jarman said: "While the monthly nominal reading was in line with expectations, the quarterly volume result was materially lower than expected, and lower than implied with all the monthlies in hand, at negative 0.1 per cent."