Why are my Blender model's bones incorrectly rendered on "Animation"?

I created very simple model in Blender (2.70). Added several bones and 10 frames of animation.

[Blender sources and exported fbx here][1]

In blender it looks like this:

After exporting to FBX and importing it to U4 I got strange results on render. It seems that my bones are not translated properly. Animation has either rotation and location properly set (at least I hope so):

It renders properly only when I set “Translation retargeting” to “Skeleton” instead of “Animation”:

Can somebody tell me, why my bones are incorrectly rendered on “Animation”? Should I export the model in a special way? Should I take something important into consideration?

Any hint is much appreciated.