The Australian dollar strengthened to above $0.645 on Thursday, attempting to rebound from an over 1% loss in the prior session to end a five-session losing streak. The upturn was supported by upbeat economic data, led by a 1.2% jump in retail sales for June - the strongest monthly gain since March 2022 and well above expectations of a 0.4% rise. Building approvals also surged 11.9%, the strongest increase since May 2023 and the second straight month of growth. However, the Aussie remained under pressure by a cautiously dovish outlook from the Reserve Bank of Australia. RBA Deputy Governor Hauser said the Q2 inflation data was “very welcome” and aligned with expectations, but emphasized the central bank remains cautious and data-dependent. With inflation easing to a four-year low and unemployment rising to 4.3%, markets are pricing in a 95% chance of a rate cut on August 12. Elsewhere, China’s factory activity contracted more than expected, adding pressure on the Chinese-proxy currency.