AXJO posts worst month in six Investors assess retail sales...

	  AXJO posts worst month in six 

	  Investors assess retail sales data 

	  Engineering firm Worley falls 7.2%  

(Updates to close)

Australian shares closed higher on Tuesday, driven by gains in miners and financials, while investors assessed an unexpected decline in a key domestic retail sales print ahead of the U.S. Federal Reserve's policy meeting.

The S&P/ASX 200 index (xjo) ended 0.4% higher at 7,664.1 points. The benchmark has, however, fallen 3% in April, marking its worst month since October last year.

Domestic data showed an unexpected decline in March retail sales, causing markets to trim the chances of another interest rate hike by September to 30%, from 44% before the data.

"This highlights the current pressures facing the retail sector as households limit spending in response to cost of living pressures," analysts at ANZ Group said in a note.

Meanwhile, the Fed is expected to hold interest rates at its two-day monetary policy meeting starting later in the day, with investor attention firmly focused on the timing of U.S. rate cuts.

"If Fed Chairman Powell adopts a hawkish tone, this could put markets on edge if the wait for a rate cut gets extended", said Tim Waterer, chief market analyst at KCM Trade.

"Further, if the FOMC (Federal Open Market Committee) leaves the door open for a possible hike should inflation pressures persist, this could spark a downturn in risk appetite."

On the day, heavyweight miners .AXMM led gains on the resource-heavy bourse, climbing 0.4%, as they tracked the prices of most base metals.

Mining behemoth BHP (BHP) rose 0.3%, while Fortescue (FMG) was up 1.7%.

Financials .AXFJ ended 0.4% higher, with the 'Big Four' banks all jumping between 0.3% and 0.7%.

Healthcare companies .AXHJ climbed 0.5%, while gold stocks .AXGD lost 0.8%.

Among individual stocks, engineering firm Worley (WOR) dropped 7.2% as its top shareholder sold a 19% stake.

Fuel retailer Ampol (ALD) declined 3.3% after reporting a drop in quarterly production at its Lytton refinery in Queensland.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.3% finish the session at 11,957.5 points.